The Insolvency Service has closed 13 companies that sold over-priced carbon credits to investors, contributing to a £19 million scam.
Eco-Synergies Ltd was the company and wholesaler behind the overall operation and passed carbon credits through the other companies to sell on to investors at over 860 times the original amount. Eco-Synergies even fooled the other companies involved by promising they'd see a 60% return without lifting a finger.
Eco-Synergies and MH Carbon Limited made false statements and offers to the public in an attempt to get customers to invest, with the carbon credits supplied by all companies unsuitable for investment.
Mr Registrar Jones of the High Court, commented, "It is plain that the companies were trading VER carbon credits as investments which is wholly incorrect and misleading. Sales were made at excessive profit margins making investment unlikely to lead to a profit or to break even."
The following companies were placed into liquidation on 1st May:
- Eco-Synergies Limited
- Eco-Synergies Nominees Limited
- MH Carbon Limited
- City Asset Partnership Limited
- Wealth Capital Limited
- C T Carbon Limited
- Alternative Capital Limited
- New Frontier Advisory Limited
- World Commodity Trading Limited
- Worldwide Commodity Partners Limited
- Beta Commodities Limited
- Capital Acquisitions Limited
- Cleartrade Limited
At least 32 companies involved with carbon credit selling have been shut down since 2012, with over 1,500 investors affected by the scams.