UK court shuts firm that retired carbon credits without buyers’ consent

Published 17:35 on March 18, 2015  /  Last updated at 11:15 on May 12, 2016  /  Bavardage, EMEA  /  No Comments

The UK High Court has wound up another company for using false and misleading information to sell carbon credits to vulnerable investors for up to £11.95 each, and in some cases retiring those credits without the buyer’s knowledge or consent.

The UK High Court has wound up another company for using false and misleading information to sell carbon credits to vulnerable investors for up to £11.95 each, and in some cases retiring those credits without the buyer’s knowledge or consent.

Eco Business Management Limited was found to have used high-pressure sales techniques, promising investors returns of up to 82% within 6-24 months, and had untruthfully claimed that it was “covered” by the FCA and that it had entered liquidation, the UK’s Insolvency Service said on Wednesday.

“The company claimed to be an organisation that treasures its role as a leader in the carbon finance industry but in reality was an eco con on investors cutting their savings, not pollution,” said Chris Mayhew, company investigations supervisor at the agency.

The court heard that 22 individuals bought carbon credits for more than £100,000 in total – funds that had since been transferred to a Swiss bank account.

No further details were given with regards to the types of credits sold or their origin.

By Mike Szabo – mike@carbon-pulse.com