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Sunday, December 26, 2010

Danish tax authority has been robbed blind - carbon trading scandal - bogus traders walk off with $7 Billion USD - Denmark: thanks for the laugh

Source: Jack H. Barnes

Denmark Gives Away $7B USD, or 2% of GDP to Carbon Credit Traders

The Danish tax authority has been robbed blind by a carbon trading scandal that has rocked the market for carbon off sets: while the story saw some press a year ago, significantly higher losses have since been reported and the MSM has ignored the story.

The Danish Auditor General is on the case now as the scope of the crime has become obvious, and grown exponentially since it was first reported. Originally discussed as a quasi-small-time dollar scam, the reality a year later is a lot larger: Europol is estimating a value on the case of 38 Billion Kronars and the values seem to keep going up.

Connie Hedegaard, then the Climate & Energy Minister for Denmark is now the EU Climate Commissioner. While she was with the Danish government, she helped set up and manage a system where there were no background checks on the listings of permitted traders. This removal of identification was done even though the EU requires at least a passport. This helped a group of fake, rogue traders set up a program that looted the Danish economy of up to 2% of its gross GDP in lost VAT taxes.

Here’s How:

The Denmark CO2 permit registry was setup with extremely lax rules and regulations, possibly intentionally. In 2007, Ms. Hedegaard removed the requirement for identification and in a very short period of time traders figured out the loopholes and started to back up the proverbial truck. How? To put it simply: you could round robin CO2 credits, booking the VAT as a bonus each time.

What is painfully obvious is that over 1,100 of the 1,256 (or about 88%) of the registered traders listed in their system were bogusly set up for fraudulent activity. The traders have since been delisted as the scope of the crime becomes obvious.

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