RALEIGH, N.C. – Alvaro Mendez-Flores, age 39, of Mexico, was sentenced today to 41 months
imprisonment and over $4,000,000 in restitution, for conspiring to commit
interstate transportation of stolen property and money laundering.
According to court records, Mendez-Flores and his
co-conspirators stole vast amounts of used cooking oil from numerous
restaurants, arranged for the stolen oil to be transported to the northeast,
and laundered the proceeds.
As alleged in the Superseding Indictment, used cooking oil,
historically viewed as a waste product, has become a valuable recycled
commodity over the past decade. The majority of the recycled cooking oil sold
is used for biofuel, fluctuating with market demand. It can also be used as a
nutritional additive to animal feed and pet food, or in the production of many
consumer and industrial products.
Legitimate businesses, known as renderers, collect used
cooking oil from restaurants in exchange of compensation and sell it to
refineries so that it can be processed and recycled. The rendering industry
estimates that there is an annual loss of approximately $45-75 million dollars
from the theft of used cooking oil.
United States Attorney Higdon emphasized, “These crimes rob
hardworking citizens and restaurant owners of valuable income necessary to
their livelihood and it will not be tolerated.”
“Used cooking oil has become a sought-after commodity by
biodiesel companies, and restaurants use the sale of this oil as another source
of revenue,” said Ronnie A. Martinez, Special Agent in Charge of Homeland
Security Investigations (HSI) in Charlotte, North Carolina. “This organized
group of co-conspirators had an elaborate scheme to steal thousands of gallons
of cooking oil for their own profit in violation of several U.S. laws.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern
District of North Carolina made the announcement after sentencing by United
States District Judge James C. Dever III.
The case was investigated by HSI.
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