A man has been disqualified from acting as a director for 15 years for running a carbon credit investment scam.
The High Court ruled that Young Erumuse, a director of The London Carbon Credit Company Limited (LCCCL) had sold carbon credits as an investment when they had no genuine secondary resale market, and had failed to keep adequate records of the transactions.
The company was wound up by the Insolvency Service in 2013. A subsequent investigation into the company by the official receiver at public interest unit, a specialist team of the Insolvency Service, found that between 29 June 2011 and 27 March 2013, Erumuse had caused or failed to prevent LCCCL from inducing members of the public to invest in carbon credits for which there was no genuine secondary market.
The company purchased carbon credits for an average of £3.50 and charged its customers an average of £110.70 representing an average mark up of 3,163%.
Erumuse also failed to maintain, preserve or deliver up adequate company records to explain payments totalling over £2 million and receipts of almost £1 million.
Paul Titherington, official receiver in the public interest unit, said that LCCCL had been involved in a scheme ‘to deprive investors of their savings’ through the credit.
‘I would caution that anyone cold-called and tempted to “invest” in carbon credits, is being offered nothing but hot air and to simply hang up the call,’ he said.
The High Court’s ruling means Erumuse cannot act as a director of a company, take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership, or be a receiver of a company’s property until 1 September 2030.