2018 – The Carbon Tax case

A vast VAT fraud on carbon credits shook France and Europe. In less than a year, this colossal scam stole €1.6 billion from the French State and nearly €6 billion from the European Union. The fraudsters, some of whom fled to Israel, siphoned off the money by buying and reselling carbon credits, exploiting loopholes in the system so as never to pay over the VAT.

This fraud, made possible by the European market in CO2 emission allowances, involved paperless electronic transactions. The Caisse des dépôts et consignations, through its subsidiary Bluenext, had launched the French CO2 market, offering fraudsters a new opportunity. They bought allowances free of VAT in one country, resold them with VAT in France, then disappeared without paying over the tax. A simple trick, but a devastating one. Using sham companies and front men, the fraudsters handled colossal sums, while the authorities realised the scale of the disaster too late.

Philippe Vouland found himself at the heart of this sprawling case. He was defending an ordinary man caught up in the turmoil of this complex fraud. He had to prove that his client was merely a pawn, unaware of the financial manipulations. The man had neither the means nor the intention to enrich himself in this way. It was an arduous task, in a trial where the sums at stake and the methods used by the fraudsters defied imagination.

With determination, Philippe Vouland put forward the evidence of his client’s innocence. He showed that the man had no knowledge of the fraudulent transactions and that he had been manipulated by the real culprits. His arguments convinced the court.

Philippe Vouland’s client was not imprisoned. While the French authorities hunted down those responsible and international arrest warrants multiplied, the case remained a sombre reminder of the flaws in the system and the ingenuity of fraudsters.

Read an article in Le JDD about this case (in French): Link to the article