On 20 September 2013, fraud squad detectives raided an office in the City of London and searched properties in the south east of England. The Police believe that the boiler room has raised about £1 million by cold calling. As with other similar operations, the boiler room has targeted elderly and vulnerable people.
The police have not yet released any information about the company involved, but hopefully this is a sign that the police and the regulatory authorities in the UK are stepping up a gear in clamping down on this scam.
In December 2012, detectives arrested 11 people suspected of being involved in fraudulent companies Hudson Forbes, CT Carbon and Burlington Energy Markets. Detective Inspector Matthew Bradford, of City of London Police, said,
“Carbon credits are designed for companies and small businesses to offset their carbon emissions, and definitely not for the individual investor looking to buy and sell. This week’s operation in the Square Mile and across the South East is evidence how the City of London Police will act quickly and decisively against anyone they suspect of using worthless investments to target people with false promises and impossible dreams.”
Fraud squad carbon credit arrests in the City
City of London Police, 20 September 2013
City of London Police detectives have arrested six men as part of an investigation into a suspected ‘boiler room’ operating from the Square Mile selling carbon credits.
It is believed that the boiler room has already accumulated approximately a million pounds from cold calling people across the UK. Using high pressurised sales tactics, carbons credits are sold for over inflated prices that are not capable of generating the returns promised.
The morning operation saw fraud squad detectives descend on a City office. Searches were later carried out in properties across the south east.
DI Teresa Russell, who is leading the investigation, said: “In 2013 the City of London Police has targeted a number of City offices housing what we believe are criminal operations intent on defrauding elderly and vulnerable people out of large sums of money, some of whom have parted with their life savings.
“We will take action against criminals involved in this type of scam, close down their operations, holding those responsible to account.”
The City of London Police advises people not to accept cold calls and always seek independent advice before committing to any financial investment.