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High Court shuts down three firms over £3.2m carbon credit scam

The High Court has ordered three firms into liquidation over a £3.2m scam selling carbon credits to investors at high prices.

Global Carbon Broking, Global Neutral and Future Carbon were ordered to be wound up on 18 December following a probe by The Insolvency Service.

Global Carbon Broking supplied carbon credits to Global Neutral which then marketed them at inflated prices. Future Carbon was an additional carbon credit supplier.

Carbon credits are UN-issued permits which allow companies to emit carbon dioxide and can also be traded. Global Carbon Broking and Global Neutral were ordered into provisional liquidation in September and November 2012 respectively.

All three companies were linked to World Future Limited, a firm which raised £2.5m by selling carbon credits to the public in the same way.

World Future Limited and two other connected companies, Capital Wealth and Fourteenforty Limited, were ordered into liquidation by the High Court in March 2013.

The Insolvency Service found that World Future Limited marketed “near worthless” carbon credits to investors, which had a price mark up of between 150 and 250 per cent.

Insolvency Service company investigations supervisor Chris Mayhew says: “This blow formally brings to an end a thoroughly disreputable group of companies selling carbon credits to the public by false and misleading statements.”

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