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?