Amaranth To Pay $7.5M In FERC, CFTC Settlements

Law360, New York (August 12, 2009, 3:05 PM EDT) -- Defunct hedge fund Amaranth Advisors LLC will pay a $7.5 million fine to settle allegations by the Federal Energy Regulatory Commission and the U.S. Commodity Futures Trading Commission that the fund attempted to manipulate energy futures prices before its collapse in 2007.

The uncontested joint settlement resolves all claims against the hedge fund, its subsidiaries and former trader Matthew Donohoe, FERC and the CFTC said in separate statements on Wednesday. Claims remain, however, against another former trader, Brian Hunter.

Amaranth was also required to acknowledge its...
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