A Houston grand jury returned a superseding indictment Wednesday that included new charges of false price reporting and wire fraud against a former natural gas trader of El Paso Merchant Energy.

The indictment brings additional charges against Donald E. Burwell, 44, for allegedly reporting bogus gas trades to price index publications in an attempt to manipulate prices for natural gas.

Burwell was previously indicted in November 2004 on one count each of conspiracy, false reporting and wire fraud for allegedly providing inaccurate trade reports to an industry publication in July 2000. Wednesday’s superseding indictment incorporates the pending charges and adds two counts of false reporting and two counts of wire fraud for allegedly transmitting false trade reports in August 2000 and October 2000. Burwell will remain on bond pending trial.

According to the allegations in the superseding indictment, Burwell sent e-mails to Inside FERC, a McGraw Hill publication, on July 28, Aug. 31 and Oct. 31, 2000 that included false volume and price data for individual gas trades at various price hubs.

The indictment alleges that the inaccurate information transmitted by Burwell tended to affect Inside FERC’s index prices and, as a result, tended to affect the price of a commodity, namely natural gas, that was transported in interstate commerce.

If convicted, each count of reporting false market information that affects or tends to affect the price of natural gas carries a maximum punishment of five years in prison and a fine of $500,000. The conspiracy count and each count of wire fraud carries a maximum punishment of five years in prison and a fine of $250,000.

The superseding indictment is the result of the continuing investigation being conducted under the auspices of The President’s Corporate Fraud Task Force by the U.S. Postal Inspection Service and the Federal Bureau of Investigation.

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