The warring conmen at the heart of a €5bn carbon credit

Emissions trading was supposed to save the planet. But fraudsters quickly learned how to rip the system off, making themselves spectacularly rich. Then some of the major players started turning on each other

• A longer version of this piece first appeared in The Atavist

A good scammer sees opportunity everywhere, including in their own downfall. In 2006, the police showed up at Gustav Daphne’s house in Beverly Hills. They had come once before, when a neighbour complained about his trash. Daphne happened to be swimming in his pool at the time, and because he is French, he came to the front door in a tiny little bathing suit. The police were appalled; they gave him a reprimand about storing his garbage more tidily and scurried away.

This time was different. The cops came straight into the house. There were a dozen of them, wearing bulletproof vests. They took him outside in handcuffs and put him in a car. Maybe he was paranoid, having built a multimillion-dollar empire on fraud and deceit, nurturing connections with international criminal rings, but at first he thought he was being kidnapped. When he saw the jail, he was relieved.