Global warming funds draw fire from investors October 19, 2008Posted by honestclimate in Discussions.
Tags: climate change, fraud, global warming, japan
Global warming funds draw fire from investors
From Japan Times, October 19, 2008
A group of investors may soon file a complaint against two Tokyo investment partnerships that attracted around ¥600 million via government-issued credit transfer certificates for failing to pay dividends and reimburse investors, sources familiar with the matter said Saturday.
The partnerships, represented by several men in Tokyo, secured investments from around 250 people nationwide in connection with the leasing of power-saving equipment, the sources said.
But many of the investors in the two investment partnerships, called No. 1 and No. 2 global warming measures investment partnerships, are elderly people, the sources said.
The partnerships guaranteed the principal investments and said they would earn annual returns of 6 to 7 percent when they solicited investments for securitized leasing fees. The investments were made in increments of ¥100,000.
When funds were sent to a designated bank account, investors received a contract, a credit certificate and a copy of a credit transfer certificate issued by the Justice Ministry.
In November last year, investors were told by a lawyer for the partnerships’ representatives that dividends could not be paid due to a problem in the leasing business. The investors said the partnerships have not responded adequately to their demands to their refunds, and that they received only a portion of their funds.
Three people who were members in the partnerships meanwhile said that they were fooled by the other members.
Credit transfer certificates — which are issued by a regional legal affairs bureau — are intended to prevent such problems as duplicate transfers, but they do not require proof that a credit has been issued. The certificate says in fine print at the bottom that it does not prove the existence of a credit.