Thursday, August 13, 2009

Manipulation of Gas Futures Nets $7.5 Million Civil Fine

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it has entered into a consent order settling charges brought against Amaranth Advisors, L.L.C., based in Greenwich, Connecticut, and its Amaranth Advisors (Calgary) ULC subsidiary, based in Calgary, Alberta (the Amaranth entities) for attempting to manipulate the price of natural gas futures contracts on the New York Mercantile Exchange (NYMEX) on February 24 and April 26, 2006.

The federal court order, entered on August 12, 2009, by the Honorable Denny Chin of the U.S. District Court for the Southern District of New York, requires that the Amaranth entities pay a $7.5 million civil monetary penalty. Additionally, the court’s order permanently enjoins the Amaranth entities from violating the anti-manipulation provisions of the Commodity Exchange Act. The order also prohibits Amaranth Advisors, L.L.C. from violating Section 9(a)(4) of the Commodity Exchange Act (CEA), which prohibits anyone from making false, fictitious, or fraudulent statements to registered entities, such as the NYMEX.

Posted By Valerie Garner

Categories: Business, Finance



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