C-Quest Capital CEO Faces Carbon Data Manipulation Charges
C-Quest Capital's ex-CEO faces charges for faking emissions reduction data.
The company suffers reputational damage in the carbon offset market.
Kenneth Newcombe, the former CEO of C-Quest Capital, a carbon finance and private equity business in Washington, D.C., is facing charges related to allegations of manipulating carbon emission reduction data.
If proven guilty, he could face a jail term of up to 20 years on charges of wire fraud and commodities fraud.
C-Quest develops emission reduction projects to earn carbon credits. The credits can then be sold to businesses looking to offset their carbon emissions. The company was founded in 2008 by Newcombe, a former employee of Goldman Sachs and the World Bank.
Prosecutors allege that he and other employees fabricated stories to exaggerate their success. The company predominantly focuses on providing cooking stoves in Asia and Africa, which were projected to reduce more emissions than they actually did. He also concealed the true performance of these projects.
Tridip Goswami, another C-Quest executive, is facing charges with Newcombe but could not be reached for comment. Former COO, Jason Steele, admitted to the charges and said he would cooperate with the government.
The Commodity Futures Trading Commission also took action against Newcombe by suing him. The prosecutors decided not to charge the company because it reported Newcombe's alleged misconduct to authorities and is cooperating with them.
C-Quest is a top player in the carbon offset business, and its ethical operations and environmental goals are raising doubts about the real intentions of companies working for the betterment of society and highlighting significant issues within the carbon offset industry.
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Source: Bloomberg
