Three more connected companies in London that were involved in a £3.2 million scam selling carbon credits to investors at inflated prices were ordered into liquidation by the High Court in the public interest following an investigation by the Insolvency Service.
Global Carbon Broking Ltd supplied carbon credits to Global Neutral Ltd which then marketed them to the public at inflated prices. Both companies had earlier been ordered into provisional liquidation on 19 September 2012 and 8 November 2012 respectively. A third carbon credit supplier, Future Carbon Ltd, was additionally wound up on grounds of public interest. The evidence shows that the carbon credits were marked up by 140% from that paid by Global Neutral Ltd and that the total mark up from the price that the credits were acquired from the ultimate source and ultimately sold to investors was marked up by between 183% and 268%. Cold calls were made to consumers and misrepresentations were made including promises such as a 25% return in six months.
All three companies were inextricably linked with World Future Limited, a company that raised some £2.5 million by selling carbon credits in the same misleading way to the public. World Future Limited and two other connected companies, Capital Wealth Ltd and Fourteenforty Limited were ordered into liquidation in the High Court on grounds of public interest on 6 March 2013.
Global Carbon Broking Ltd had initially supplied carbon credits to World Future Limited and together with Future Carbon Ltd (and Fourteenforty Limited) had been used to shield the selling practices of World Future Limited from the ultimate source of the credits who otherwise would not have supplied them
Following the appointment of the provisional liquidator of Global Carbon Broking Ltd, documentary evidence was removed from their premises to frustrate the investigation. Global Neutral Ltd continued selling carbon credits to the public and raised a further £668,000 until that company was also ordered to close.
Welcoming the court’s judgements Company Investigations supervisor Chris Mayhew said:“This blow formally brings to an end a thoroughly disreputable group of companies selling carbon credits to the public by false and misleading statements. Investors should not respond to cold calling investment sharks, or to others who claim to be able to recover money already lost as they will gain nothing but risk losing everything. The Insolvency Service will not allow rogue companies to rip off vulnerable and honest people and will investigate them and shut them down.”