Gas Traders Charged with Misconduct

Five gas traders were charged for allegedly filing fake reports related to California's 2000-01 Energy Crisis:

"The deeper we dig, the more that we will find of this misconduct," U.S. Atty. Michael Shelby said Monday. "Our markets depend on the truthfulness of the information that fuels them."

The penalty for conspiracy and wire fraud on each charge is up to five years in prison and a $250,000 fine. Each charge of false reporting carries up to five years and up to a $500,000 fine.

According to the indictments, Valencia and Singleton allegedly contacted each other in August and September 2000 and agreed to report fake trades to industry publications Inside FERC Gas Market Report and Natural Gas Intelligence. Under federal law, the government must prove that fake trades were reported, not whether they were published or affected markets.