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Mis-sold carbon credit investments
On the surface, the appeal of carbon credit trading is understandable. Unlike many investment opportunities, the ‘environmentally-friendly’ aspect of carbon credit trading sounds appealing. This is certainly something that salespeople, including some carbon credit brokers, have exploited.
We have heard of many cases where elderly people in particular were targeted directly by the carbon credit sales companies themselves through cold-calling, and it is likely that the relaxing of pension laws in 2015 has only exacerbated the problem, making it easier for unscrupulous businesses to exploit people’s savings through carbon credit fraud or mis-selling.
Carbon credit sales firms closed down
Whilst the carbon credit sales ‘industry’ has been in the news for some time, recent years have seen an increase in firms being exposed after their clients failed to return any profit. Earlier in March 2016, the company Wealth Capital Limited was closed down for selling over £250,000 of carbon credits.
The director of Wealth Capital Limited has been prevented from directing a company until 2017. In another case, Alternative Capital Limited was also shut by the court for selling £873,000 of carbon credits. Investors who bought these credits had no secondary market to sell them onto. They were also sold them at such inflated prices that, even if there had been a market, they would have been unable to make a profit.
A further 19 companies involved in carbon credits sales were wound up by the court in February, including Blue Horizons Trading Ltd (involved in both carbon credit trading and storage pods), Environmental Acquisitions Ltd, and Carbon Neutral Investments Limited.
Get in touch
If you have made carbon credit investments, either directly from a company or via carbon credit brokers, and have subsequently lost out financially following advice from a regulated independent financial adviser, TLW Solicitors are here to help on a no-win, no-fee basis. Even if the company or carbon credit broker who advised you is no longer trading, we may still be able to recover compensation for you.
