CFTC Hits Traders With $50M Oil Manipulation Suit

Law360, New York (May 24, 2011, 8:10 PM EDT) -- The U.S. Commodity Futures Trading Commission sued Parnon Energy Inc. and Arcadia Petroleum Ltd. on Tuesday in New York federal court, accusing the traders of manipulating the market for crude oil.

The CFTC claims Parnon and Arcadia ran a scheme to drive the price of West Texas Intermediate light sweet crude oil up and down from January 2008 to April 2008, netting the companies $50 million in illegal profits and violating the Commodity Exchange Act.

West Texas Intermediate oil, which is delivered to users in Cushing,...
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