Reuters reports:
The British tax office arrested seven people in London on Wednesday in a suspected 38 million pounds ($62.6 million) value-added tax fraud in the European market in carbon allowances, it said. … “Those arrested are believed to be part of an organized crime group operating a network of companies trading large volumes of high-value carbon credits,” it said.
The Financial Times adds:
Anand Doobay, a partner at Peters & Peters, a City-based law firm specialising in financial crime, said the ethereal nature of the fast-expanding multi-billion dollar international market in carbon credits had made them an attractive target for graft: “There is an increasing amount of fraud connected with them as a commodity. It’s trading with something that’s intangible, and that isn’t regulated in the way some other commodities are.”
Since carbon credits are a completely intangible unlike every other real commodity on the planet, cap and trade has afforded organized crime a new avenue to defraud taxpayers and other unsuspecting victims. Now where have we heard people predict exactly that would happen?
Carbon Trading Is an Invitation to Fraud
Why Should the U.S. Embrace Failure?
The Fraud at the Core of Cap and Trade
