View more on these topics

Eight years behind bars for £2.4m carbon credit scheme fraudster

An Essex man has been jailed for eight years after mis-selling carbon credits to 130 victims in 2012 and 2013 and using the funds to purchase luxury items for himself.

City of London Police took on the case from Essex Police, sentencing Sami Raja of Grays, Essex in Southwark Crown Court on Friday.

Raja was found guilty of six counts of conspiracy to defraud and was also found guilty of money laundering.

Along with four others, Raja mis-sold carbon credits to the 130 victims over a 20-month period between January 2012 and August 2013.

The police say victims received cold calls from apparent brokers through two companies, Harman Royce Ltd and Kendrick Zale Ltd, and were persuaded into investing in voluntary emission reductions.

The victims were all aged 50 or above and living in “affluent” postcodes, the police add.

Investment fraudster jailed for 5 years after forging documents

Carbon credits were charged at between £5.26 and £6.50 with victims’ losses totalling £1.5m.

The police say: “The money paid into the Harman Royce bank account was used in many ways. This included paying staff wages and buying luxury items including an Aston Martin worth £33,000 and a £4,000 watch.

“Victims were told that they had to keep their investment in carbon credits for varying amounts of time, between four months and 10 years. They would then receive a ‘contract note’ which detailed the investment sum and how many credits this reflected.”

Victims were also provided with fake ‘carbon market analysis’ spreadsheets claiming to detail monthly changes in carbon credit prices between 2007 and 2012.

Investment fraud ringleader jailed over boiler room scam

Raja was arrested at the address of Kendrick Zale Ltd in 2013 which was found to have sold around 300,000 carbon credit unites to 28 investors totalling £900,000.

The police say: “Similar tactics were used by Kendrick Zale. Victims reported receiving unsolicited phone calls from ‘brokers’ at Kendrick Zale who used high pressure sales techniques to persuade them to invest.

“In many cases, investors were persuaded to cash in Individual Savings Accounts or sell existing shares in reputable companies.”

Raja’s accomplices – Essex-based Sandeep Dosanj and Charanjit Sandhu along with Kent-based Michael Nascimento and James Lanston were sentenced to a total of 29 years in prison last September.

Recommended

7

Nic Cicutti: Banks should scrap free services

Competition on overdraft charges alone will not do the trick. Banks should charge us for each service Has anyone ever queried how much it actually costs to run a bank account? I asked myself that question a few weeks ago, after receiving an annual letter from my bank detailing how much I had paid that […]

2

How to become a financial adviser: diplomas, degrees and workplaces

Information on how to become a financial adviser is sparse. Money Marketing speaks to advisers about what the requirements really are and how best to meet them. Speaking to financial advisers and planners today, each will have a unique and varied story about how they entered the profession. There are more than a handful of pathways […]

3D illustration of Ribs - Part of Human Skeleton.
21

Calls to change lifetime allowance for doctors ‘will fall on deaf ears’

Quilter has hit out at the possibility of changing the pension rules for doctors, saying the Treasury will not support separate provisions for different professions. In response to discussions between health secretary Matt Hancock and the Treasury last week around a potential exemption to standard lifetime allowance rules, Quilter pensions expert Ian Browne says arguments for […]

Leading Edge June – Investment panel debate

RLAM’s asset class specialists discuss some of the findings from the panel session at our recent Investment Conference. By Rob Williams, Head of Distribution Welcome to the latest edition of Leading Edge. It has been an eventful six months since the last e-zine. The European Central Bank announced ongoing stimulus measures, while the immigration crisis in Europe threw the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I went on the record in one of my BBC Radio Leeds broadcasts warning about this scheme at the time it was first being marketed. If we could see it, why were regulators so far behind the curve as to allow investors to be fleeced of £2.4m?

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com