HOUSTON, TX – Denette Johnson, along with Courtney Cubbison Moore, Robert Harpo, John Tracy, and Kelly Dyer, have been penalized for falsely reporting natural gas trade information in an attempt to manipulate prices, according to a consent order entered on November 7, 2007, by the U.S. District Court for the Southern District of Texas. The case was brought by the U.S. Commodity Futures Trading Commission (CFTC).
The defendants, residents of Texas and California, were charged with submitting inaccurate fixed-price, physical, baseload trade information to compilers of natural gas monthly price indexes between October 2001 and June 2002. These reports, covering at least nine natural gas pipeline locations in the Western United States, were knowingly false and intended to influence prices reported by companies like Platts and Intelligence Press, Inc.
The CFTC complaint alleged that the defendants circulated internal emails directing traders to report prices in a biased manner, designed to benefit their trading positions. The actions took place while the individuals were employed by Shell Trading Gas and Power Company, providing services for Coral Energy Resources, L.P.
As a result of the settlement, the defendants will jointly pay a $1 million civil monetary penalty. Furthermore, they are prohibited from applying for registration with the CFTC, engaging in any activity requiring registration, or acting as a principal of any registered entity or person.
“This settlement further demonstrates that the CFTC will vigorously pursue cases of false reporting to energy index providers and attempts to manipulate energy indexes and markets,” stated CFTC Director of Enforcement Gregory Mocek. “We will continue to use our professional resources and expertise to uncover and pursue claims of trading misconduct in the energy markets.”
The original complaint was filed on February 1, 2005. The case was led by CFTC staff members Joseph Konizeski, John Dunfee, Tracey Wingate, Mary Kaminski, Luke Marsh, Joan Manley, and Paul Hayeck.
Source: CFTC.gov
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