Centaurus Energy Master Fund LP, a Houston-based energy hedge fund that was founded by John D. Arnold after the collapse of Enron Corp., was fined $75,000 by the New York Mercantile Exchange (Nymex) for violating position limits in natural gas trading.

The business conduct committee found that on Jan. 26 Centaurus violated position limits by establishing an aggregate intraday peak position that exceeded the “do not increase” order by 0.11%. This was Centaurus’ fourth position limit rule violation in a 24-month period and further violated a previous order by [the] Business Conduct Committee to cease and desist from violating exchange orders, said CME Group, which owns Nymex and a number of other exchanges.

Centaurus has neither admitted nor denied the position limit rule violations.

After Enron collapsed in 2002, former Enron employee Arnold founded Centaurus with his previous year’s $8 million bonus. His company now has as much as $3 billion in assets under management. His employees include several big name energy traders such as ex-Enron executive Greg Whalley, as well as Bill Perkins, Mike Magg and Conrad Goerl, previously of MotherRock.

Arnold was one Enron employee who has gone on to stellar status following the company’s demise; he was never associated with the wrongdoing at his former firm.

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