Also known as Tuesdays, in Brussels.
From The Atavist Magazine, no. 148:
Watch it Burn
A good scammer sees opportunity everywhere, including their own downfall. In 2006, the police showed up at Gustav Daphne’s house in Beverly Hills. They had come once before, when a neighbor 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 that he was being kidnapped. When he saw the jail, he was relieved.
The feeling was short-lived. The jail was cleaner than those in Europe where he’d been held, but after a couple of hours he demanded a cigarette and was informed that smoking was prohibited. OK, he thought. There must be a way. There’s always a way. He would find the right people, negotiate the right conditions. He had to smoke! He loved to smoke. He loved it more than anything, except for women. He loved women! And smoking, and art, and shopping.
He found someone in the prison whom everyone called El Gordo, a Mexican guy who could hook people up with anything. Daphne asked for cigarettes and was given an address on the outside where he would need to have $300 delivered. This was not a problem. He didn’t crave money, but it was useful, so he accrued it. His mansion had once belonged to a silent film star; he sometimes commuted by helicopter. There wasn’t much Daphne couldn’t afford.
After Daphne’s cousin drove a Bentley to a shady neighborhood and made the cash drop on his behalf, Daphne went back to El Gordo to collect his cigarettes. El Gordo looked at him, then gave him a nicotine patch. “No smoking in prison,” El Gordo said.
By the time Daphne was extradited to Europe to face money laundering charges, which was the reason he’d been arrested in the first place, he had kicked his cigarette habit. He felt great. He was buoyant with health. He boarded a plane to Switzerland in handcuffs, was whisked to a prison near the Alps, and was put in a cell. Waiting for him there was a pouch of tobacco. He resisted for a few hours. Then he smoked the whole thing.
Eventually, Daphne was sent to a prison in France, where he could get anything he wanted: magazines, special meals, the Israeli cigarettes he preferred. His lawyer could also bring him things. So when he saw a segment on TV about climate change policy, he asked his lawyer to bring him more information about France’s plans to reduce emissions. Daphne had a preternatural ability to sniff out criminal prospects, and he’d caught a familiar whiff.
When Daphne read the materials his lawyer provided him, he learned about Europe’s carbon-emissions trading system, the first of its kind in the world. It had grown out of the Kyoto Protocol, the landmark international agreement to reduce global emissions. Sure enough, Daphne told me, he saw the blueprint for what would become his next illicit enterprise. As soon as he’d finished his time in prison, he began gaming the new emissions-trading system.
The scam would help Daphne accrue even more money, and it would make him famous. In the media he cut a dashing figure, partying with celebrities and oligarchs. He maintained his slim physique by avoiding carbohydrates like they were venom and dressed in blazers cut from blue velvet or embroidered with shimmering brocade flowers. He liked to wear a diamond-encrusted Chopard sun pendant on his partially bared chest and was rarely photographed without one of his hundreds of pairs of Tom Ford sunglasses, all aviator-style with gradient lenses. Always, it seemed, he had a cigarette hanging out of the side of his mouth.
Reporters dubbed Daphne the “prince of carbon,” but it wasn’t just his flamboyant charisma that elevated him to criminal royalty. So did the nature of his new fraud. Daphne was scamming the fight against climate change by exploiting a policy flaw that left billions for the taking.
No one was ever sure who was working with whom, who might bescrewing someone else over, or who had started the whole thing.I should say here that Gustav Daphne is a pseudonym. He remains a wanted man in France, so when I traveled to meet with him at his gated villa in Tel Aviv, he agreed to speak on the condition that I not use his name—any of his names. (He has a few aliases.) He kept saying what a bad idea it was to talk to me. He had turned over a new leaf, he insisted, and like a freshly avowed ascetic, he nurtured a few simple pleasures: taking his impeccably trained Belgian Malinois on sunset walks along the beach; going horseback riding with his daughters. He tried to steer clear of trouble, though it occasionally sought him out. A few weeks before we met, some masked guys on a motorcycle drove by firing guns at his home; when I visited, the front door was being replaced.
Still, his name is all over the French media. I warned him that, at least in some circles, a pseudonym would be a pretty weak shield for his identity. That was OK with him. He said that he wanted to put the past behind him and focus on his new ventures, like crypto investing. So, no name.
During my visit, Daphne took calls from his lawyers and asked favors of his wife and flirted with acquaintances over WhatsApp. He wore his Tom Ford sunglasses indoors and out. He showed me his art: a large Kandinsky painting in the foyer, a few Chagalls downstairs. The villa had some burly guys on staff and a cleaner from Sri Lanka who picked up after two fluffy indoor dogs that liked to avail themselves of the plush white carpets.
All this is part of Daphne’s downsized lifestyle. He used to have a bigger mansion, with a swimming pool and a tennis court, a gym and a movie theater. He once parked his yacht in the glittering harbors of the Côte d’Azur. But he has fashioned a new life for himself in Israel, which has yet to grant France’s request for his extradition.
Daphne wanted me to know that to him the carbon scam was a negligible chapter in a long and successful criminal career. It wasn’t his most lucrative scheme; it wasn’t even the first opportunity he’d pursued in the lumpish market of environmental interventions conceived by a civilization in ecological peril. Plus, he was just one of many people who ripped off the emissions-trading system.
Daphne and other scammers’ pillaging of Europe’s carbon market constitutes what the media have called “the fraud of the century”—billions of euros were stolen in a matter of months. The shadowy scheme attracted established crime rings and amateur hucksters alike, many of whom knew each other. But the scam lent itself to duplicity: No one was ever sure who was working with whom, who might be screwing someone else over, or who had started the whole thing. Its web reached the boxing rings of Las Vegas, the offices of Germany’s biggest bank, the caves along the border of Afghanistan and Pakistan where Osama bin Laden was hiding, and the gilded restaurants of Paris, where it also left blood spattered on the streets. It pulled in a playboy demi-celebrity, an Afghan refugee, a flashy street hustler who couldn’t accumulate enough bling, an immaculate businessman who hobnobbed with the queen of England, the doyenne of Marseille’s underground, and a man some people called the Brain.....
....MUCH MORE
