The U.S. Commodity Futures Trading Commission said Tuesday that three firms and two traders will pay $13 million to settle allegations that they manipulated the crude oil market in 2008.
Parnon Energy Inc., Arcadia Petroleum Ltd., Arcadia Energy (Suisse) SA, and traders James T. Dyer and Nicholas J. Wildgoose allegedly made $50 million by manipulating crude inventories to move prices in their favor.
Parnon Energy also agreed to limitations on physical-oil-market trading for three years, the Wall Street Journal said.
A consent order was filed in federal court Tuesday.
The case was filed against the traders 2011.
alleging that the defendants made $50 million by manipulating levels of physical crude-oil inventories in early 2008 to benefit bets they had placed in financial-derivatives markets.
This year a federal district court judge, William H. Pauley III of New York, said the government mishandled evidence and was “completely reckless” in turning over material that could have revealed a confidential informant’s identity to the defendants, the Wall Street Journal said.