Trader

Enron will pay $35 million to the Commodity Futures Trading Commission (CFTC) to settle charges that it, along with one of its natural gas traders, Hunter Shively, engaged in a scheme to manipulate the Henry Hub natural gas spot and futures markets on July 19, 2001. Shively also agreed to pay $300,000 to settle charges against him.

A U.S. district court judge in Houston last week denied a motion by a former Enron Corp. trading executive that sought to dismiss charges by the Commodity Futures Trading Commission (CFTC) that he manipulated or attempted to manipulate the wholesale natural gas market.

A U.S. district court judge in Houston this week denied a motion by a former Enron Corp. trading executive that sought to dismiss charges by the Commodity Futures Trading Commission (CFTC) last year that he manipulated or attempted to manipulate the wholesale natural gas market.

Dan Gordon, 27, who once headed Merrill Lynch’s global energy markets group and then went on to run the unit when it was sold to Allegheny Energy last year, on Friday pleaded guilty to criminal charges of money laundering, wire fraud and conspiracy to falsify books and records.

Three criminal charges against an ex-Dynegy Corp. natural gas trader and one criminal charge against a former El Paso Merchant Energy executive were thrown out last week by a district judge in Houston who ruled that the charges, which all related to reporting false natural gas price information to an industry publication, were too broad.

Atlanta-based power and natural gas trader Mirant Corp. lost its months-long effort to stay out of bankruptcy last Monday, filing voluntary petitions seeking Chapter 11 protection in a Texas court. The company also filed an application in Canada last Tuesday seeking creditor protection for its Canadian subsidiaries.

Atlanta-based power and natural gas trader Mirant Corp. lost its months-long effort to avoid bankruptcy late Monday, filing voluntary petitions seeking Chapter 11 protection in a Texas court. The company was expected to file an application in Canada Tuesday seeking creditor protection for its Canadian subsidiaries.

A third former Enron executive was dragged away in handcuffs by the FBI last week on charges that he was the architect of some of the more infamous energy trading schemes that were designed to manipulate the California energy market from 1999 through 2001. John M. Forney, 41, the former head of Enron’s real time power trading desk in Portland, OR, and a current employee of American Electric Power (AEP) was charged last Tuesday with wire fraud and conspiracy. He was arrested at AEP’s headquarters in Columbus, OH.

John M. Forney, 41, on Tuesday became the third former Enron executive to be charged with a federal crime for manipulating the California energy market. The current employee of American Electric Power (AEP) was arrested Tuesday at AEP’s headquarters in Columbus, OH, for his involvement in Enron’s manipulation of the western energy market during the height of the California energy crisis from 1999 through 2001.