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Alleged Carbon Credit ‘Scam’ Companies Forced Into Liquidation by the Insolvency Service – By Siobhain Egan

carbon credit scamIn another example of the multi-faceted approach that the authorities are taking with this type of unregulated collective investment schemes (UCIS), a number of linked carbon credit companies have been forced into liquidation as a result of a full liquidation order made by the High Court on 18 December 2013.

Rather than the traditional view, which would be to mount an expensive criminal investigation by, for example, City of London Police, the authorities are using civil recovery proceedings and now insolvency proceedings to stop those companies that they SUSPECT of any wrongdoing. See the article in New Model Advisor dated 3 January 2014. This approach is far quicker and cheaper for the authorities, the standard of proof in these proceedings being lower than in the criminal courts.

The FCA regularly uses High Court proceedings against UCIS in order to effectively shut them down and recover monies.

However, we should not forget that the trade in carbon credits is legal and there are many successful companies lawfully trading in this area. In these particular cases, the Insolvency Service was of the view that the companies were selling the credits to investors at 'inflated prices'.

If you are affected by any of these issues please contact our specialist lawyers by calling us on 0207 387 2032 or completing our online enquiry form here.

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Jail for carbon credit defendants

Three men were jailed earlier this month for their parts in an attempt to steal carbon credits worth around €8 million.

According to the Serious Organised Crime Agency (SOCA), the attempted theft, which took place between June and November 2011, involved attacks on a number of websites.

Carbon Credit Crimes in the EU

One targeted the Spanish Carbon Credit Registry RENADE, from which 350,000 European Union Allowances (carbon credits) were transferred without authority into a brokerage account. This account was frozen before more than 8,340 of the credits were sold on.

The other attempt targeted the United Nations Clean Development Mechanism Registry. On this occasion the defendants tried to transfer 426,108 Certified Emission Reduction (CER) credits, but the plan fell through when Registry administrators spotted that an incorrect account number had been used.

The man behind the computer hacking, 32-year-old Matthew Beddoes, was arrested in November 2011, and pleaded guilty in May last year to various offences, including money laundering, fraud and conspiracy to commit Computer Misuse Act offences against the two Registries.

He was sentenced to two years nine months in prison for these offences.

Two other men were involved in the attempt. According to SOCA, Jasdeep Singh Randhawa pleaded guilty to four offences relating to conspiracy to commit Computer Misuse Act offences, and received a 21 months sentence.

Jandeep Singh Sangha pleaded guilty to two money laundering offences and was sentenced to twelve months in prison, suspended for two years.

Contact LNL's Criminal Lawyers in London

If you have been charged with a criminal offence similar to the carbon credit offences described above or in respect of any type of crime, contact us now. Please contact Jeffrey Lewis or Siobhain Egan, or click here to get in touch with our london criminal defence solicitors via our online enquiry form.

This blog is provided as a news item only. No connection between LNL and the parties involved is intended or implied.

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