In another example of the multi-faceted approach that the authorities are taking with this type of unregulated collective investment schemes (UCIS), a number of linked carbon credit companies have been forced into liquidation as a result of a full liquidation order made by the High Court on 18 December 2013.
Rather than the traditional view, which would be to mount an expensive criminal investigation by, for example, City of London Police, the authorities are using civil recovery proceedings and now insolvency proceedings to stop those companies that they SUSPECT of any wrongdoing. See the article in New Model Advisor dated 3 January 2014. This approach is far quicker and cheaper for the authorities, the standard of proof in these proceedings being lower than in the criminal courts.
The FCA regularly uses High Court proceedings against UCIS in order to effectively shut them down and recover monies.
However, we should not forget that the trade in carbon credits is legal and there are many successful companies lawfully trading in this area. In these particular cases, the Insolvency Service was of the view that the companies were selling the credits to investors at 'inflated prices'.
If you are affected by any of these issues please contact our specialist lawyers by calling us on 020 7387 2032 or completing our online enquiry form here.
