British Revenue & Customs officials arrested seven people last week on suspicion of tax fraud arising from the sale of carbon dioxide permits - the European version of cap and trade program that passed the U.S. House in June. New York Times

Those arrested are believed to be part of an organized group operating a network of companies trading large volumes of high-value carbon credit., according to the release from the HR Revenue & Customs
The companies allegedly purchased carbon credits from overseas VAT free sources and sold them to UK businesses and solde them to a VAT inclusive price.The fraud amounted to approximately £38 million or $63 million. The British authorities believe that the criminals used the money to finance lavish lifestyles.

Photo: http://www.morguefile.com/archive/display/613102

KJC