Yves here. One of the things on our very long list of important issues we’d like to write about is the way Google, an unregulated information-screener, can dictate companies’ business models and keep information out of the public eye by how they handle search queries. Richard Smith gives an example below.

By Richard Smith

Dear google.co.uk,

1. On 31st May 2013, Beale and Company LLP, an English law firm much better known for its expertise in building and construction matters than its flair for reputation management, submitted a legal complaint to Google about certain blog posts at redd-monitor concerning the Dubai firm, Advanced Global Trading. The effect can be seen if one Googles (for instance) “redd-monitor ian hainey” at google.co.uk: the results look like this. At google.de, by contrast, the results look like this.

2. Advanced Global Trading lost its trading licence on 4th June 2013.

3. Advanced Global Treading is a firm associated with Carbon Neutral Investments Limited. Here is a web archive from Carbon Neutral Investments’ web site documenting that association.

4. On the 2nd July, the UK’s financial regulator, the FCA, issued this warning about firms associated with Carbon Neutral Investments:

Beware when an investment involves Carbon Neutral Investments or Gemmax Solutions We are concerned about investments involving Carbon Neutral Investments and Gemmax Solutions. Find out more and how to protect yourself from unauthorised firms. Several unauthorised firms promoting and selling carbon credits are telling investors that Carbon Neutral Investments Limited (CNI) or Gemmax Solutions, firms authorised by us, will handle the money in their investment. We believe this is done to suggest investors will be protected as though they are dealing with an authorised firm. But this is not correct. Investing in carbon credits We continue to receive many reports from people who have been approached by firms promoting and selling carbon credits in the UK. These reports usually include the investor stating that they have lost money on the investment by not being able to sell, or at least get a competitive rate, when trading the carbon credits.

5. Until 4th June 2013, when it lost its licence to trade in Dubai, Advanced Global Trading engaged in the selling of carbon credits to investors.

6. On the 13th September, 2013, the FCA, the UK’s financial regulator, issued a further warning about the sale of carbon credits to investors:

Carbon credit trading Find out how carbon credit trading works, why we think you should avoid investing in carbon credits and related markets, and how to protect yourself from what is most likely a scam. A carbon credit is a certificate or permit which represents the right to emit one tonne of carbon dioxide (CO2) and they can be traded for money. However, many investors have told us they are not able to sell or trade the carbon credits they have bought. None of these investors reported making a profit. This supports our view that there is not a viable secondary market for ordinary investors to sell or trade carbon credits, despite claims and promises made by many firms, advisers and brokers promoting and selling them as an investment. We have also received reports that an increasing number of firms are using dubious, high-pressure sales tactics to sell carbon credits to investors. How it works Investors are usually called out of the blue by salespeople promoting carbon credits, but contact can also come by email, post, word of mouth or at a seminar or exhibition. You may be offered carbon credit certificates, voluntary emission reductions (VERs), certified emission reductions (CERs) or an opportunity to invest directly in a ’green‘ scheme or project that generates carbon credits as a return on investment. Carbon credits and VERs certificates are often labelled as ’certified‘, but this certification is voluntary and involves a wide range of bodies and different quality standards that are not recognised by any UK compensation scheme. The caller may claim carbon credits are ‘the new big thing’ in commodity trading, industries now have to off-set their emissions, the government is focusing on green developments or that it is a growing market. But we have seen that investors are not making any money as they cannot sell or trade their carbon credits.

7. The 31st May complaint is reproduced below. You will see that the allegations made both in the posts, and especially by the commenters, are somewhat more colourful than, but entirely consistent with, and supported by, the FCA’s warnings.

8. This blog would like to know whether, on the basis of the information provided here, you intend to restore redd-monitor’s blog post excerpts to google.co.uk’s search results, or alternatively, remove the warnings made by the UK’s financial regulator from google.co.uk’s search results, since, by construction, they are just as defamatory as anything redd-monitor has published.

9. This blog offers a gentle hint: the second choice would be an idiotic mistake.

Update 10/11/2013: further reading, very relevant for google.co.uk, and for Beale and Co Solictors LLP, on the Defamation Act which went into UK law on 25th April 2013

The Defamation Act of 2013 increases protections for individuals and companies including broadcasters and journalists. The act bars cases brought against individuals who live outside the United Kingdom, which were a major source of “libel tourism” in the UK, the Guardian reported.

Appendix: the legal complaint

Defamation Legal Complaint to Google

May 31, 2013

Sender Information:

BEALE AND COMPANY SOLICITORS LLP

Sent by:GB

Recipient Information:

Google, Inc. [Websearch]

Mountain View, CA, 94043, USA

Sent via: online form: Other

Re: Infringement Notification via Websearch Complaint

Google Form: Report other legal removal issue

Name: [redacted]

Company name: BEALE AND COMPANY SOLICITORS LLP

If applicable, include the name of the company or organization whose legal rights you represent (e.g. if you are legal agent, etc.)

ADVANCED GLOBAL TRADING

Allegedy Infringing Material

http://www.redd-monitor.org/2013/05/09/advanced-global-trading-another-boiler-room-scam-or-a-ponzi-scheme-or-both/

http://www.redd-monitor.org/2013/05/21/response-from-advanced-global-trading-we-can-only-hope-that-you-amend-the-title-and-the-last-paragraph-of-your-article/

http://www.redd-monitor.org/2013/05/24/some-questions-for-charles-stephenson-ceo-of-advanced-global-trading/

http://www.redd-monitor.org/2013/05/27/another-response-from-advanced-global-trading-we-see-no-utility-for-our-clients-or-stakeholders-in-corresponding-with-you-again/

Please explain in detail why you believe the content on the above URLs is unlawful, citing specific provisions of law wherever possible. *

In accordance with English law, we are

instructed that the articles and/or comments referred to in this report

contain defamatory content. Our client has confirmed to us that (a) the

comments are defamatory (b) they are untrue and (c) that we are authorised

to make this report.

(1) First Article

http://www.redd-monitor.org/2013/05/09/advanced-global-trading-another-boiler-room-scam-or-a-ponzi-scheme-or-both/

1.1 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The article’s author seeks to use innuendo by asking the question whether

Advanced Global Trading is an illegal Ponzi scheme.

Advanced Global Trading denies that it operates an illegal Ponzi scheme.

1.2 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The article’s author seeks to use innuendo by asking the question whether

Advanced Global Trading is an illegal Ponzi scheme.

Advanced Global Trading denies that it operates an illegal Ponzi scheme.

1.3 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “Mark Smith” alleges that Advanced Global Trading’s business is

a scam, it is an illegal boiler room company and that it pays for “likes”

on Facebook.

Advanced Global Trading denies all of the allegations.

1.4 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “AGT GAME OVER” alleges that Advanced Global Trading has created

a false market based on an illegal Ponzi scheme.

Advanced Global Trading denies that it operates an illegal Ponzi scheme.

1.5 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “Anon Anon” alleges that clients are lied to and not returned

their funds and that Advanced Global Trading is conducting criminal

activity which should be reported to Interpol.

Advanced Global Trading denies that it lies its clients or that it conducts

criminal activity.

1.6 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “Paul D” uses innuendo to suggest that Advanced Global Trading’s

business practises are unlawful.

Advanced Global Trading denies that it conducts its business in an unlawful

manner.

1.7 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “M Schmidt” alleges that Advanced Global Trading’s business is

an illegal boiler room company, that it fabricates evidence to clients and

that it is operated by criminals.

Advanced Global Trading denies all of the allegations.

1.8 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “P Edwards @london” alleges that Advanced Global Trading’s

business is an illegal boiler room company and that one of its directors

uses different names to hide his illegality.

Advanced Global Trading denies all of the allegations.

1.9 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “sajd” alleges that Advanced Global Trading’s business is a scam.

Advanced Global Trading denies the allegation.

1.10 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster “HG” alleges that criminals run Advanced Global Trading.

Advanced Global Trading denies the allegation.

(2) Second Article

2.1 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The article’s author seeks to use innuendo by asking the question whether

Advanced Global Trading is an illegal Ponzi scheme.

Advanced Global Trading denies that it operates an illegal Ponzi scheme.

(3) Third Article

3.1 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The article’s author seeks to use innuendo by suggesting that Advanced

Global Trading might be conducting fraud.

Advanced Global Trading denies that it commits fraud.

(4) Fourth Article

4.1 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster seeks to use innuendo by suggesting that no lawyer would accept

instructions from Advanced Global Trading because of their activities.

Advanced Global Trading denies the allegation.

(5) Fifth Article

5.1 The words used seek to lower Advanced Global Trading in the estimation

of right-thinking members of society generally.

The poster states that the directors of Advanced Global Trading are

criminals.

Advanced Global Trading denies the allegation.

legalother_quote_commonwealth: (1) First Article

http://www.redd-monitor.org/2013/05/09/advanced-global-trading-another-boiler-room-scam-or-a-ponzi-scheme-or-both/

1.1 “Advanced Global Trading: Another boiler room scam? Or a Ponzi scheme?

Or both?”

1.2 “The US Securities and Exchange Commission describes a Ponzi scheme as

follows . . .”

1.3 “I used to work at AGT, the whole business is a complete and utter

scam! There are over 100 clients unable to get there initial investment

back. There are no facts to the eveidence they sell. They inflate the price

of there own stock. It is a true boiler room company . . . The reason FB

has so many likes is because they hire (even though they say on the website

he’s a director Ian Hainey for his Social media skills . . . this business

must close, it is corrupt, people are losing money.”

1.4 “Starting to see where this is going? AGT has a Wikipedia page -it’s

here and astonishing!! http://en.wikipedia.org/wiki/Ponzi_scheme . . .

They have created a make believe market based on the Ponzi Scheme above!

http://carbontradexchange.com/products/verified-emission-reduction-vers

This is misleading, this is unlawful and immoral . . .”

1.5 “As a former high level executive with the company I can verify all

comments above – Clients are promised extremely fast liquidation periods

(48 hours – 1 week) as one of the many ‘sales’ tools to hook prospective

investors however when liquidation request is made, money never

materializes. Some investors have been waiting well over 20 weeks now and

STILL have not received their money back! And the worst part about it is

the laws of the UAE enable AGT to continue running operations as usual.

They are allowed to continue accepting new money from clients without

having to return any and the only viable legal route is a civil case which

will take well over a year with minimal probability of winning solely for

the fact they hide behind a very vague terms and conditions which is all

the courts look at, and AGT management knows this. Ever wonder why the

England offices closed?? Because authorities there were catching on and

something like this would not fly as easily in such a country as it does in

UAE where their head office (and only office!) is located. Interpol is

required in this case immediately.”

1.6 “Finally there is a platform to voice my concerns about this bogus

company. I get called every 3-4 months with someone trying to sell me these

credits. The sales people are so pushy its scary. I went to there offices

and met with the sales guys. Complete rogue traders. I cannot believe this

company is still able to trade. Dubai Authorities should look into this

immediately.”

1.7 “Thank you Chris for shedding some spot light on this unmoral

organisation! My brother was approached via a cold call to invest into this

business and came to me for advice. I spoke to some friends who had also

been cold called and ran a mile away from this investment once they got

chance to meet the boiler room sales people that you meet at the smoke and

mirrors office at Emaar Square. They play on some idelogical make believe

supply and Demand market for trading permits quoting a lack of green

projects vs the demand for offsetting. It’s utter fabrication . . . UAE

Authorities have to do something about this and urgently, its an unsavory

organisation ran by modern day thief’s!”

1.8 “i believe Stephenson has previously been involved in major boiler

rooms operations in other countries. i know he has used other surnames in

the past.

what has he got to hide?”

1.9 “ihave also invested in this scam company . . .”

1.10 “. . . this company is a group of professional criminals”

(2) Second Article

http://www.redd-monitor.org/2013/05/21/response-from-advanced-global-trading-we-can-only-hope-that-you-amend-the-title-and-the-last-paragraph-of-your-article/

2.1 “Wouldn’t you agree that one possible explanation for this is that AGT

is running a Ponzi scheme?”

(3) Third Article

http://www.redd-monitor.org/2013/05/24/some-questions-for-charles-stephenson-ceo-of-advanced-global-trading/

3.1 “I think everyone who has invested in this company may well be the

victims of a fraud. I think you need to contact the police. Action Fraud

may be able to help, on the grounds that Charles Stephenson is a British

citizen and the company was at one time registered in the UK. Please

contact the police and Action Fraud (http://www.actionfraud.police.uk or by

ringing them up: 0300 123 2040).”

(4) Fourth Article

http://www.redd-monitor.org/2013/05/27/another-response-from-advanced-global-trading-we-see-no-utility-for-our-clients-or-stakeholders-in-corresponding-with-you-again/

4.1 “NO LAWYER will touch them because of the history of the director or

these alleged shadow directors.”

(5) Fifth Article

http://www.redd-monitor.org/2013/05/27/another-response-from-advanced-global-trading-we-see-no-utility-for-our-clients-or-stakeholders-in-corresponding-with-you-again/

5.1 “These guys are cowards, criminals and are now seriously running scared

from the comments i’m hearing from within.”