The main suspect, surnamed Kuo, was arrested along with four alleged accomplices on Thursday for producing cooking oil without a proper license and inspection.
Kuo and his illegal cooking oil ring had reportedly been making cooking oil using gutter oil, also known as drainage oil, and selling it to leading cooking oil brand Chang Guann and food-manufacturer Wei Chuan.
The police had been investigating the case for six months.
Taiwan’s Food and Drug Administration said 242 tons of the dirty oil was sold to Chang Guann, which used it to produce 782 tones of lard.
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