US Indicts Zim Carbon Credit duo

The U.S. Department of Justicehas indicted two prominent figures in Zimbabwe’s Carbon Credit field in a massive fraud scheme.

Kenneth Newcombe, CEO of CQC Impact Investors LLC, and Tridip Goswami, head of CQC’s Carbon and Sustainability Accounting Team, stand accused of engaging in fraudulent practices that secured millions in investments and carbon credits.

Jason Steele, the former Chief Operating Officer of CQC, has already pleaded guilty to charges including wire fraud conspiracy, commodities fraud conspiracy, and securities fraud conspiracy for his role in the scheme.

https://zimbabwenow.co.zw/articles/12622/implications-of-the-c-quest-capital-indictment-for-zimbabwes-carbon-credit-industry

The specific charges against Newcombe and Goswami include:

1. Wire Fraud Conspiracy: Both defendants are accused of conspiring to defraud investors by manipulating data from carbon projects, including those in Zimbabwe. This involved inflating the success of these projects, such as exaggerating the number of operational cookstoves to claim more carbon credits than they were entitled to.

2. Wire Fraud: The defendants allegedly used falsified survey data to obtain carbon credits fraudulently. When actual data from Malawi and Zambia showed disappointing emission reductions, the conspirators reportedly “revised” the results by enlisting outsiders to submit fraudulent survey forms

3. Commodities Fraud Conspiracy: Newcombe and Goswami are charged with conspiring to manipulate the carbon market. Their scheme allegedly included misrepresenting the number of verified cookstoves in their Zimbabwe project to a carbon credit issuer, allowing them to claim excess Verified Carbon Units.

4. Commodities Fraud: The fraudulent sale of carbon credits—an important tool in the global fight against climate change—led to unsuspecting buyers purchasing these inflated credits, undermining the integrity of the global carbon market.

5. Securities Fraud Conspiracy- (Newcombe only): In addition to the above, Newcombe is accused of misleading a major investor into committing up to US$250 million to the company. This deal included a personal windfall of over US$16 million for Newcombe through the sale of his shares in the company.

6. Securities Fraud: Newcombe's manipulation of investor information and the false claims about the performance of the company's carbon projects are central to this charge.

If convicted, both men face significant penalties, with some charges carrying prison sentences of up to 20 years.