Skip to content
Menu
REDD-Monitor
  • Start here
  • About REDD-Monitor
  • REDD: An introduction
  • Contact
REDD-Monitor
Diffraction Limited

Diffraction Limited: Another carbon credit boiler room bites the dust

Posted on 18 June 20146 January 2021

By Chris Lang

The High Court in London has ordered Diffraction Limited into liquidation following an investigation by the Insolvency Service. Diffraction Limited is another part of the web of companies around Eco-Synergies.

Eco-Synergies was a wholesaler of voluntary carbon credits, which it sold to other companies to sell to the public as investments. Between March 2012 and November 2012, Diffraction Limited sold more than £1.3 million of voluntary carbon credits to retail investors.

Eco-Synergies bought the carbon credits for an average price of 65p per credit. On average, Diffraction bought the carbon credits from Eco-Synergies for £1.11. It sold them to retail investors for £4.81.

In her ruling in the High Court, Ms Registrar Derrett said:

In my judgment a substantial increase in value would therefore be required before the customer could break even. Customers in my judgment were therefore not obtaining the competitive prices represented and the risk warning was inadequate to advise consumers that they were in fact purchasing at inflated prices what are wasting assets that are difficult to trade.

Derrett also noted that “customers were referred to Citadel’s FCA registration, which offers the customer no protection as trading in carbon credits is not a regulated activity”. Citadel Trustees has appeared on REDD-Monitor a number of times in the past. On 1 April 2014, Citadel changed its name to Highpoint Trustees.

Diffraction Limited’s website has disappeared, but parts of it are safely stored on archive.org. Here’s a sample of how Diffraction Limited misled the public into buying carbon credits as investments:

The carbon market is currently valued at around 100 billion Euros and is projected by analysts to rise to 3 trillion Euros by 2020. The market is still in its infancy, offering investors the huge potential of this predicted rise in markets.

Diffraction Limited’s sales team cold called people to persuade them to buy carbon credits. One potential victim was on the receiving end of a two hour long sales pitch from Diffraction, despite the fact that he said he had no money to invest. Diffraction rang him again five hours later.

Diffraction Limited was registered in October 2010. David Ramsey was the sole director for one year, after which he was replaced by Lincoln Prevost. Ramsey told the High Court that after he resigned as director, he continued to be involved in the company as an employee and assistant to Prevost. Ramsey currently buys and sells diamonds in Dubai through a company called Diffraction Diamonds DMCC.

The company’s name has appeared in a few comments following a post about MH Carbon (another company in the Eco-Synergies web). “Carl” commented in January 2013 explaining that his mother had bought £40,000 of carbon credits from Diffraction Limited. Towards the end of 2012, Diffraction Limited wrote to tell Carl’s mother that she would now be dealing with MH Carbon. Carl wrote that Diffraction Limited had “left their offices and apparently moved to Dubai”.

Another commenter, “Sam”, wrote that his “investment” of £7,000 had also been transferred to MH Carbon, and that MH Carbon was trying to persuade him to hand over another £4,000.

A third commenter, “Dbinny”, reported that he had been contacted by Spencer George from Hamilton Carter offering him an exit for his carbon credits. Spencer George had previously worked for Diffraction Limited and had sold “Dbinny” carbon credits. Hamilton Carter set off a cacophony of alarm bells when I looked into them in November 2013.

These companies have something in common other than selling carbon credits as investments. Diffraction Limited, MH Carbon and Hamilton Carter were all on Carbon Neutral Investment’s “List of Clearing Members”. Coincidence?
 

2 thoughts on “Diffraction Limited: Another carbon credit boiler room bites the dust”

  1. Richard says:
    19 June 2014 at 9:51 am

    Has anyone had contact with MH Carbon Nominees? They are now offering to transfer Carbon credits purchased through MH Carbon (now in liquidation) from a register managed by them to a new register that will enable the credits to be traded in the future.
    They state that the transaction will be managed by major accounting firms – PWC, EY etc..
    I have been approached by a so called accountancy practice (I suspect they are not accountants)mentioning prices of $ 4.50 per carbon equivalent unit and other unrealistic data.
    I am obviously suspicious of any organisation connected with MH Carbon and wonder if anyone has also been approached?

  2. Richard Smith says:
    19 June 2014 at 5:55 pm

    In fact, MH Carbon Nominees started contacting people back last Nov. See for example comments here

    http://redd-monitor.org/2013/01/15/mh-carbon-another-boiler-room-scam/#comment-1004480

    Back in Nov they had the same sort of proposition that they have given you now (it is still on their web site). At that time the transfer to another register was supposed to happen after an external audit. As you see, six months+ further on, there is no reported progress. Not even the promises they made 6 months ago have been updated.

    The stuff about multiple big-4 accounting firms being involved in the registry transfer looks deeply implausible. Note that before he ‘bought out’ MH Carbon Nominees, Razaq of MH Carbon Nominees allegedly worked at MH Carbon, in the same room as the boiler room brokers.

    The unrealistic CC price you mention makes this sound like yet another scam. Dangling the prospect of a $4.50 CC sale may be a device to keep you paying MH Carbon Nominees custody fees, or to extract an advance fee from you.

    The whole MH Carbon Nominees story smells like phase 2 of the scam, the so called ‘Recovery Room’.

    Contact Action Fraud!

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE!

Recent themes
30x30
Natural Climate Solutions
WWF's conservation scandals
Aviation and offsetting
Conservation Watch

Recent Comments

  • Ben on Response from Kurt Kaiser, Director of Compass Carbon: “Your article was of great concern to us”. And some questions for Kaiser from REDD-Monitor
  • James Mewa Kamaya on Papua New Guinea’s Forest Authority cancels Mayur Resources’ Kamula Doso REDD project
  • Benedikt von Butler on Switzerland’s offsetting deal with Peru excludes REDD. It will still not reduce emissions
  • Chris Ibe on Bar Works: The return of Renwick Haddow
  • Xindia on Bar Works: The return of Renwick Haddow

Recent Posts

  • REDD-Monitor is moving to Substack
  • REDD Project in Brazil Nut concessions in Madre de Dios, Peru finally started paying communities a decade after the project started. “I’m still lacking money,” says one community member
  • REDD-Monitor’s top ten posts in 2022
  • The harsh reality of 30×30: The EU is keen to allow extractivism in the 30×30 target – but not Indigenous Peoples’ territories
  • Human rights abuses against Indigenous Peoples and the proposed “30×30” target

Recent Comments

  • Ben on Response from Kurt Kaiser, Director of Compass Carbon: “Your article was of great concern to us”. And some questions for Kaiser from REDD-Monitor
  • James Mewa Kamaya on Papua New Guinea’s Forest Authority cancels Mayur Resources’ Kamula Doso REDD project
  • Benedikt von Butler on Switzerland’s offsetting deal with Peru excludes REDD. It will still not reduce emissions
  • Chris Ibe on Bar Works: The return of Renwick Haddow
  • Xindia on Bar Works: The return of Renwick Haddow

Issues and Organisations

30x30 AB 32 Andes Amazon Boiler rooms California Can REDD save ... ? Carbon accounting Carbon Credits Carbon Offsets CDM Conservation-Watch Conservation International COP21 Paris Cryptocurrency Deforestation EcoPlanet Bamboo Evictions FCPF Financing REDD Fossil fuels FSC Green Climate Fund Greenpeace Guest post Human rights ICAO Illegal logging Indigenous Peoples Natural Climate Solutions NGO statements Plantations R-M interview REDD and rights REDD in the news Risk RSPO-Watch Safeguards Sengwer The Nature Conservancy UN-REDD UNFCCC Verra World Bank WRM WWF

Countries

Australia Bolivia Brazil Cambodia Cameroon Canada China Colombia Congo Basin region Costa Rica DR Congo Ecuador El Salvador European Union France Gabon Germany Guyana Honduras India Indonesia Kenya Luxembourg Madagascar Malaysia Mexico Netherlands Nicaragua Norway Panama Papua New Guinea Paraguay Peru Republic of Congo Sierra Leone Spain Sweden Tanzania Thailand Uganda UK Uncategorized United Arab Emirates USA West Papua
©2025 REDD-Monitor | Powered by SuperbThemes!