Carbon Credit Watch

Deutsche Bank staff jailed in carbon trading fraud crackdown

(December 21, 2012) As carbon credit fraud continues to escalate, five employees at Germany’s biggest money lender have been accused of money laundering or obstruction of justice in relation to a carbon trading scheme. In related news, the UK’s Financial Services Authority is now asking anyone who has invested in carbon credits to fill in an online survey, in an effort to better illuminate the problem of fraud. Meanwhile, a new interactive map has been launched by the International Carbon Action Partnership (ICAP) and Ecofys to show the status of emissions trading schemes around the world. 

Based on Business Green and Reuters and stories published on December 13 and 14, 2012

Four Deutsche Bank staff have reportedly been jailed in the latest twist to a European carbon trading fraud investigation that has seen the bank’s co-chief executive brought in for questioning.

Five bank staff appeared before judges yesterday accused of money laundering or obstruction of justice in relation to a carbon trading scheme.

According to news agency Reuters citing the Frankfurt prosecutor, four of those arrested will remain in jail, while a fifth has been allowed home on health grounds.

The employees were arrested in a raid on Wednesday when hundreds of police and tax inspectors searched the offices of Germany’s biggest lender.

The investigation focuses on tax evasion linked to tax credits and a scheme involving the trading of carbon permits, which resulted in Deutsche Bank needing to adjust its 2009 tax return.

According to Business Green, “the investigations form part of a wider EU probe into fraud related to the trading of carbon credits…. Carousel fraud, or missing trader fraud, is estimated to have cost EU member states up to €5bn (£4.3bn) in lost tax revenue before a crackdown earlier this year led to a string of arrests across the continent, including at Deutsche Bank.”

For the full articles see:

Deutsche Bank execs investigated in carbon fraud crackdown

Deutsche Bank staff jailed in carbon trading fraud crackdown

Four Deutsche Bank employees jailed on Thursday

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