Out To Lunch: Hunter Skipped Town During FERC Probe

Jul 30 2007 | 12:38pm ET

Former Amaranth Advisors energy trader Brian Hunter cut short an interview with a regulator that later charged him with attempted market manipulation, skipping town during lunch.

“He was in the middle of an interview and there was a lunch break, and he never came back from lunch,” Joseph Kelliher, chairman of the Federal Energy Regulatory Commission, said of the meeting in Washington, D.C., earlier this year, the Globe and Mail reports. The interview was part of FERC’s probe of Amaranth’s alleged efforts to depress the settlement price of natural gas futures contracts on the New York Mercantile Exchange last year.

The disgraced trader—a Canadian citizen living in Calgary, Alberta, at the time of the alleged malfeasance— “voluntarily flew to the U.S.A. to meet with FERC officials and give an interview,” a spokesman for Hunter told the Canadian newspaper. “Brian ended the interview when he and his attorney became aware that FERC had misrepresented the agenda for the discussion.”

The spokesman added that Hunter had spent hours cooperating with the Commodity Futures Trading Commission, which also charged him last week with market manipulation.

Both Hunter and Amaranth have been charged by the CFTC and FERC, with the latter agency also accusing fellow ex-Amaranth trader Matthew Donohoe of wrongdoing. An instant message conversation between Donohoe—an American based at Amaranth’s Greenwich, Conn., headquarters at the time of the trades in question and now reported by the Globe and Mail to be living in Calgary—and Hunter is among the evidence mounted by the CFTC, with Hunter bragging, “today came together quite nicely” and “I am flexing here,” and Donohoe saying it was “looking [pretty] bang on.”

All three accused parties have 30 days to respond to the FERC charges.

“It’s an opportunity for them to rebut our findings,” Kelliher said. “Now, it’s not their first opportunity to do so; we’ve been talking to them on and off for a number of months.”

But not over lunch.

THE LAWSUITS:

FERC's order to show cause
CFTC enforcement action
Brian Hunter's complaint against FERC
Brian Hunter's declaration

RELATED STORIES:

Amaranth Fires Back At CFTC Charges
Hunter Sued By FERC, Pledges To Fight CFTC Charges

Amaranth, Hunter Hit With Market Manipulation Charges


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.