Carbon credit scams have been the commodity of choice for fraudsters in recent times. With boiler room scams ever prevalent and prosecutions few there are other options for an investment victim to consider.
In some situations these companies can be placed into liquidation and the directors pursued personally. The director or a third party involved may be bankrupted and have their lavish lifestyle quashed. These actions may in turn result in a dividend being paid to creditors.
A few years ago no one had heard of carbon credits, but they've become a favourite vehicle of boiler room scammers. The type of credits sold to the public are “voluntary” ones, the money in theory going to help work such as re-forestation projects or wind farms that mitigate the harm caused by carbon emissions. But this market is unregulated, the credits have no fixed price and are poorly understood by the public. “This combination makes them perfect for boiler rooms,” said Chris Lang of REDD Monitor, which investigates emission reduction projects. "Smooth-talking scammers, often reading from a script, cold call people and convince them to buy carbon credits as an investment. In reality, they are worthless as investments."By the time people realise they have been scammed, the boiler room has disappeared, often setting up again under a different name.