Canadian company that made millions under EPA loophole under investigation for fraud

January 1, 2013 |

In Canada, an investigation into a train operated by CN Rail that crossed the U.S.-Canada border several times in 2010 without unloading its cargo has been solved. Crossing the border 24 times, CN Rail earned US$2.6 million for shipping fees. The company states that it was obligated by law to follow the instructions of its customers and charged the appropriate fees. The cars were reconfigured between each trip but cargo was never unloaded. Exploiting a loop-hole in the U.S. green energy program, Bioversal Trading was able to make several million dollars by importing and exporting fuel using new renewable identification numbers (RINs) for each border crossing. The biofuel ownership was repeatedly transferred between the Canadian company, Bioversal Trading, and its U.S. partner company, Verdeo. Both companies claim the practice is legal but are under investigation from the Canada Border Services Agency and the U.S. Environmental Protection Agency.

Category: Fuels

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