Cadaver Bone for Grafting?

Dr. S, from Los Angeles, asks us:

As I’m sure everyone is aware there has been alot of controversy surrounding grafts made from cadaver bone, following the recent stolen body parts scandal. As such, I wanted to get a consensus view from OsseoNews readers about the current state of affairs.

How much danger is there really in using cadaver bone for bone grafting? Many
of my patients are concerned they may contract a communicable disease.
But what are the chances of this? Are most of you just switching to synthetic materials because of this bad PR? But, are the synthetic grafting materials a good and predictable alternative? What are the pros and cons? What are the alternatives and where is your practice headed? Thanks.