As people grew more concerned about the impact of global warming in the late 1990s, carbon credits were a popular investment offered to those looking to grow their pension pots. However, it was not as safe an investment as promised.
As always, the idea is a simple one. Investors help companies make strides to reduce carbon emissions. When the government provides financial rewards for doing so, a share goes toward the client.
However, as with all these investments that have increased in the wave of rising pension scams, the high risk nature of the product was often left out, if not lied about directly. These now essentially hold no value despite the promises attached to them.
Carbon credit and Sipps
Many people were sold carbon credits as a self-invested personal pension (Sipp). As this scheme had a humanising nature as it contributed towards reducing global warming and saving the planet, it appeared to be an easy sell for advisers misleading their clients.
Introducers, who often make initial contact with targets via a cold call or randomly turning up on a person’s doorstep, in theory don’t have an easy job in persuading individuals to move their money from a safe pension into another scheme.
These salesmen became experts in their craft, employing all manner of tips and tricks in order to convince clients. They found ways to sell the dream that really did sound convincing. However, we are pursuing those responsible for leaving our clients out of pocket.
Carbon credit cases
In 2017, one fraudulent admin assistant, Prya Boodhoo was banned from directing another company. It was found that the company she set up, Greentrade Partners Limited, had conned hundreds.
It was found that an estimated £2.2 million was paid through Greentrade and their associates to purchase fake carbon credit shares. In the same year, there were reports of a victim of a carbon credit scam. They really struggled to get their money out of the scam. When finally someone offered to pay £30,000 for their shares, the firm that cold called them with the offer asked for an upfront ‘refundable’ fee of £8,000.
Were you talked into investing in a carbon credits scheme? Get in touch with one of our pension experts today for a free consultation.