A CBC News investigation has uncovered a cross-border mystery involving unexplained shipments of biodiesel tanker cars that were sent back and forth numerous times between Canada and the U.S. by CN Rail but were never unloaded.

According to leaked internal CN documents, the rail company stood to make $2.6 million for the effort…

Here comes the papier-mâché excuse:

“CN received shipping directions from the customer, which, under law, it has an obligation to meet,” CN Rail spokesman Mark Hallman said last week. “CN discharged its obligations with respect to those movements in strict compliance with its obligations as a common carrier, and was compensated accordingly.”

When asked whether CN wasn’t helping to do something strange, Hallman responded: “CN met its obligations as a common carrier and we have no further comment.”

CN employees, although guarded, were more candid…“In 25 years, I’d never done anything like it,” one railway worker told CBC News on the condition he not be named for fear he might be fired. “The clerk told me it was some kind of money grab. We just did what we were told…”

“This unit train will move at least once daily to Port Huron starting on Tuesday, June 18,” said an email written by Teresa Edwards, CN’s manager of transportation for Port Huron/Sarnia.

It will “clear customs and return to Sarnia. If we can get in more flips back and forth we will attempt to do so. Each move per car across the border is revenue generated for Sarnia/Port Huron.

It will be the same cars flipping back and forth and the product will stay on the car…”

Each shipment generated bills of lading, customs import and export forms that suggest total biodiesel shipments of 1,984 cars — which, taken together, would be valued in the hundreds of millions.

The U.S. biodiesel companies listed as customers were HeroBX and Northern Biodiesel. Northern Biodiesel did not answer calls, and it is unclear whether it is still operating as a business. CBC News called HeroBX repeatedly, but it has refused to respond…

There is a portion of North American commerce completely absorbed in shuffling papers – with the complicity of local, regional and national bureaucrats – which produces a profit solely on the basis of manipulation. Entirely antithetical to the intent of law, commerce and justice. But, then, that doesn’t matter if it turns a profit, eh?

  1. Ziggy says:

    That’s how we keep the economy moving up here. The thing here is the paperwork has to outweigh the produced. Anyone with a university degree can tell you that.

  2. fishguy says:

    “When it, simply, has to be there overnight” I love it when liberals try to be capitalists.

  3. McCullough says:

    I say it’s time to invade Canada..kill Terrance and Phillip, steal their beer. Igloos are no match for predator drones.

    • JS says:

      But think of the poor Baldwin brothers…. what will we do without them?

    • NobodySpecial says:

      Remember 1812 – didn’t you guys learn your lesson last time?

    • dittmv says:

      I dunno… those Canadian planes looked pretty fearsome when they bombed the Baldwins. I think the drones would turn around and run away yelping at the site of the Canadian air force.

  4. Taxed Enough Already Dude says:

    This is statist robber baron liberal progressive government at its best…yet you slanted it against capitalism…profit.

    Amazing, regardless the proof big government sucks, you blame “big business,” which is clearly just an instrument of Government’s waste fraud and theft.

    Behind all these entities, are government regulators and officials getting the lion’s share of the profits.

  5. Taxed Enough Already Dude says:

    Just the tip of the iceberg of Government waste fraud and corruption. But is Obama talking about ending theft to fund his redistribution of wealth?

    Of course not, its him and his cronies that are guilty of the theft.

  6. noname says:

    B.S. Taxed not Enough, what Government fraud and corruption?

    If anything, it shows companies need more government regulations!

    Did you even read the story?

    Bioversel Trading Inc arranged with U.S. biodiesel companies HeroBX, Northern Biodiesel and CN this deal! Where is this fault of the government?

    The deal had CN company use its rail lines and tunnels 24 times without unloading any cargo to earn $2.6 million, for flipping shipments back and forth across the border . Again where is this fault of the government?

    You and pedro are the looniest of the loons! Both don’t bother to read, instead brainlessly knee jerk every comment!

    God gave you a brain, use it!

    This is classic a WallStreet type arbitrage shenanigan; making money from transaction fees, possible market price differences and not from adding any market value.

    • Taxed Enough Already Dude says:

      Yes, the Government is behind the fraud, nothing can be done without their full knowledge and consent….of the regulators watching everything.

    • Taxed Enough Already Dude says:

      If the market were free, no profiting would be possible for such activity.

      • noname says:

        You are so full of it!

        “nothing can be done without their full knowledge and consent….of the regulators watching everything”

        What fantasy universe do you live in? Is your Tin Foil hat on correctly?

        The really sad thing, you don’t have common sense or smarts to know better!

        Didn’t God give you a brain to use?

        • Taxed Enough Already Dude says:

          There you go again, spewing hate smear and baseless allegations…instead of any reasoned rebuttal of my statement.

          Google Government Waste Fraud and Corruption and ask yourself “why doesn’t Obama get some of the funds he wants, by ending theft of public money.”

          It wouldn’t be hard…they can contract Government accounting to American Express or Visa etc…and in short order every dime spent would be instantly known…and all fraud rooted out.

          Billions of dollars saved in a few months, trillions over a few year span.

          Multiples more what overtaxing the 1% would provide, which will force some of them to hide their money…resulting in less revenue to the government.

          They don’t take the simple steps to root out theft, because they are they thieves….and regulators are in on the scam….they have to be, they are the ones looking the other way while it happens.

          • noname says:

            The thread is not about Obama!

            YOU are the one spewing Obama hate, Obama smear and baseless Obama allegations…instead of any reasoned rebuttal of my statement:

            Bioversel Trading Inc arranged with U.S. biodiesel companies HeroBX, Northern Biodiesel and CN this deal! Where is this fault of the government?

            You immediately leap and knee jerk into another round of Obama hate with out any basis!

            Again the thread is about Bioversel Trading Inc arranged with U.S. biodiesel companies HeroBX, Northern Biodiesel and CN this deal! Where is this fault of the government?

            For a Bible verse spewing and “God Fearing” person you should know: “A false witness will not go unpunished, and he who breathes out lies will not escape. “

          • MajFauxPas says:

            You didn’t read the part where Port Authority = Government.

          • noname says:

            pp(poor pedro) you stuttering again!

            “asking waaaaaaaaay too much”

            You can’t afford stuttering support and therapy anymore? Standing in the middle of the street begging not bringing in enough cash?

            I am sure you can qualify for Indigent Health Care!

            Sure, there are reporting requirements for indigent illegals; but, you’re so pathetic, people can only take pity on you.

          • noname says:

            pp(poor pedro) Who knows what kind of health care you really need; but, you certainly need mental help.

            I doubt there are any one trained well enough in the world who can help you.

            pp you are just that rare dumbass nobody understands!

          • noname says:

            pp, you and your “anencephaly”. Ok, we get it, you have a serious birth defect!

            Get over it and move on! If I knew which corner you pan-handled at, I’d put a dollar in your cup!

      • msbpodcast says:

        If the market were free, no profiting would be possible for such activity


        How fucking naive can you get?

        • Taxed Enough Already Dude says:

          That’s one of Friedman’s salient points, free markets allocate resources efficiently, not because of politics or tax havens or bribes.

          Put regulators in charge, they distort flows, make the process inefficient.

          In a free market, the bio diesel would have a real buyer, and it would be sold…in a real transaction, and transporting it wouldn’t be a scam on Government funds.

  7. Taxed Enough Already Dude says:

    This is just the tip of the iceberg, waste fraud and corruption is never ended by politicians, because they are the ones involved in the theft.

    Do you really believe Obama gave billions to Green Tech companies, changed the law so private investors could not lose, and then saw those companies go bankrupt…

    Did so without Obama’s direct consent to the theft?

    Are you all that naive?

    • Taxed Enough Already Dude says:

      When its reported stimulus cash overloaded every control, and money went out the door with absolutely no way tracing where it went…and Joe Biden (“Sheriff Joe!) says nothing, neither does Obama…

      While Obama claims he desperately needs billions to redistribute…

      But no one is being listed as the receiver of these funds…

      They also go out the door with no accounting..

      Are you all so naive not to realize the Chicago gangsters control this county, and are robbing it blind…

      Of course they want higher taxes, economy be dammed…how naive must you be not to see through the scam? Very naive.

      • mharry860 says:

        Taxed Enough Already Dude , your wasting your time with noname. I’ve given up on expressing my opinion on here, because of the trolls. If you search my username, you will find a person.
        noname is a troll and has the mental ability of my deceased down’s syndrome sister. If he believes what he says, he, she, it is retarded. Keep up the good fight with the truth, I personally can’t stomach it any more. These people make me sick.

        • noname says:

          Yes, I do believe you are sick!

        • noname says:

          pp(poor pedro) good for you, you learned new multisyllabic words from google!

          Maybe you’re not totally dumb, but certainly very close!

          I’ll try not to use big words you might have to google!

          What did the doctors say about your mind treatments? Did they prescribe stronger pill again?

          Everyone is hoping the doctors find you a brain cure and that you get better!

          • noname says:

            pp, your empty head echoing still.

            It’s a shame your parents drank dirty industrial water before having you. It’s congenital but it’s you.

            Let us know where you pan-handle and we can try and give you change.

  8. Cap'nKangaroo says:

    From the article:

    “The Bioversel fight against the CBSA’s search warrant of its Bloor Street offices in Toronto on May 30, 2012, was heard in court Wednesday in Quebec City. Court documents show European authorities had contacted the CBSA alleging Bioversel and another company mislabelled their merchandise and its origin. Officials are now investigating claims the companies were routing American-made biodiesel through Canada and falsifying its origin to avoid paying tens of millions of dollars in European anti-dumping duties.”

    And according to TEAD, Obama is somehow responsible for this.

  9. bobbo, we think with words, and flower with ideas says:

    So, with USA tax subsidized corn to ethanol program that at best breaks even on any energy production and carbon foot print, THAT bio fuel ends up being sold to Europe?

    BWAHAHAHAHAHA. Boy are we f*cked, or should I say Teabagged as if by Alfie himself.

    As always–it makes ultimate good sense if you can follow the money. I can only “wonder” if this is how speculators cause market disruption and price spikes?

    Oh—and while following the money==BIG money is hardly ever completely legal. There is more profit in illegal.

    Know what I mean? ((I know that you do!))

  10. The Monster's Lawyer says:

    All of you have it wrong. This is part of Bio-Diesel refinement. Everyone knows that Bio-Diesel needs time to age before it is consumable. The train ride gives the brew time to ferment plus keeps the Mounties and Revenuers confused until the hooch is ready. After a quick stop at Seagrams the train is empty and can start again. Soon we will have trains running in stock car races. This is the future of Canadian NASCAR.

  11. anon says:

    AAAAAAAAaaaAAAtlas Shrugged…. By Ayn Rand

  12. Benjamin says:

    Of course government makes some incentive to do this. Probably one or both governments gave a tax credit to export or import biodiesel and some guy gets the idea to sell the same biodiesel back and forth.

    Only the government would fund something where no value is being created.

  13. BeBeBe says:

    The don’t call these crooks “slick” for nothing!

  14. deowll says:

    Subsidizing energy is for bleeps. Let the market decide what works unless you have local air pollution issues and then take care of it on that bases.

    No CO2 is not harmful to living things unless it is in vastly higher concentration than now exists. They add it to green houses to make plants grow better.

  15. MikeN says:

    Yea, this only makes sense in one of two ways.
    The train company or some other entity is lying about what they are shipping, letting people think they are getting new product when they are not. This is not a sustainable business and leads to jail pretty quickly, unless the paying company is asleep.

    The government is providing subsidies, which is likely as the product is biodiesel.

    We have seen this in Europe where people were collecting subsidies for solar power that they managed to deliver at night.

    Green energy is a scam. It is pushed by corporations to make money for themselves, who fool the e

  16. sargasso_c says:

    The lawyers representing the biofuel subsidising office of the Canadian Government will probably want to have a word.

  17. MartinJJ says:

    A bit of googling makes me believe Bioversel Trading Inc isn’t a stranger to shady deals. Investigations are going on already into possible fraudulent shipments of fuel to Romania (a $100-million deal). But it most likely has to do with the $65-million Ottawa grant for the biggest producer of biofuel in Canada. They want to appear bigger then they are?


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