Excerpt: “The frauds took advantage of a scheme that was intended to reward companies for reducing carbon dioxide emissions. Companies could trade certificates – known as carbon credits – for profit. The fraudsters imported the certificates without paying VAT, and then charged VAT when they sold them, ultimately to major banks. The banks then reclaimed hundreds of millions of tax from British and European countries that had never been paid.
Investigators concluded that fraudsters had set up an extensive series of sham companies, often fronted by desperate individuals, including a drug addict and a person in debt, to evade detection. Many individuals have been prosecuted for their roles in these frauds across Europe.
Following six years of investigation and several trials in Germany, Deutsche Bank repaid €145m (£128m) of lost VAT to the German state and one of its traders was jailed for his involvement in the fraud. The banks, critics say, were key in allowing fraudsters to steal vast sums of money.
British authorities are still trying to recoup some of the money stolen in the UK – estimated to be £300m – in court cases against major banks.”
