Police warn of £300m 'ethical' investment boiler room scams

Foreign boiler room scams are conning British customers out of millions of pounds a year by claiming they are promoting ethical investments in forests, bio-fuels and carbon credits, police warn.

Investors including accountants, lawyers and policemen have been swindled out of their life savings after buying shares and other green investments which turned out to be overpriced, worthless or bogus, the Sunday Times reports.

City of London police have identified 1,200 boiler rooms based in Spain, eastern Europe and the Far East which are making £300m a year out of Britain, the paper reports.

They say the gangs, which once specialised in commodities such as oil and gold, are now preying on their victims with a range of "ethical" investments.

Detective Superintendent David Clark, of the economic crime directorate at City of London police, said: "They prey on responsible investors with very convincing schemes. It's an absolute disgrace. There are people who have lost their savings and as a result have taken their own lives."

Most of the gangs are operating in Spain and now face a crackdown in a joint operation by British and Spanish police. One boiler room operation was raided in Palma, Mallorca, in May, and 15 Britons are awaiting trial in Spain.

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