The U.S. Department of Justice’s Southern District of Iowa Federal Prosecutor’s Office announced on the 14th that two Chinese nationals living in New York have admitted to being part of a cross-state theft ring involving stolen waste cooking oil (commonly known as “gutter oil”) and conspiracy to commit extortion.
The Department of Justice stated that 33-year-old Flushing resident Tianzhu Chen admitted to charges of conspiracy to commit extortion and money laundering on September 9th. Yong Chen, a 33-year-old resident of Brooklyn, admitted to conspiracy to commit extortion. Both individuals are Chinese citizens.
The case involves a criminal network consisting of 19 defendants who are accused of stealing or attempting to steal waste oil from restaurant grease bins, transporting it to warehouses across various states in the U.S., and selling it across state lines, with proceeds being laundered.
According to the Department of Justice, stolen waste cooking oil can be processed into biodiesel, making it commercially valuable. The defendants are alleged to have stolen waste cooking oil from restaurants in states including Iowa, Tennessee, Minnesota, Indiana, Ohio, Alabama, Illinois, Nebraska, Missouri, and Kentucky.
Sentencing hearings for the two defendants are scheduled for January 29, 2027. The Department of Justice stated that the charges could carry a maximum penalty of 20 years imprisonment, with the final sentence to be determined by a federal judge considering federal sentencing guidelines and other statutory factors. Trials for the remaining defendants are set to commence on April 12, 2027.