Advanced Global Trading, a
Dubai-based company selling voluntary carbon credits to retail investors, has
been accused of being either a boiler room scam or Ponzi scheme by a website
which writes about emissions and deforestation.
The article is written by Chris Lang founder
of the website Reed-Monitor.org, which provides “news, views and analysis about
reduced emissions from deforestation and forest degradation”.
Carbon credits, of which there are
two types – voluntary emission reductions and certified emission reductions,
are certificates which represent a company’s right to emit one tonne of carbon
dioxide and can be traded for money legitimately.
However, there has been a history
of them being traded illegitimately. In the UK, the Financial Conduct Authority
(or Financial Services Authority as it was at the time) has previously warned
investors to be wary of unsolicited approaches to purchase the investments.
In a statement, which is still available
on the old FSA website alongside further information
about the scam, it said: “Carbon credits can be sold and traded legitimately
and there are many reputable firms operating in the sector.
“However, we are concerned that an
increasing number of firms are using dubious,
high-pressure sales tactics and targeting vulnerable consumers.”
In the article, published last
month on Redd-Monitor.org,
Lang suggests that AGT is artificially
inflating the price of the carbon credits it trades by selling them to new
customers, much like a traditional Ponzi scheme.
The company makes its money by
taking a commission on each transaction so will continue to make money as long
as new investors continue to buy carbon credits from existing investors.
I look forward to hearing from you similar to this post! Great blog by the way
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