U.S. COMMODITY FUTURES TRADING COMMISSION SUES NRG ENERGY, INC. FOR FALSELY REPORTING NATURAL GAS TRADES
WASHINGTON, D.C. – The United States Commodity Futures Trading Commission (CFTC) announced the filing of a complaint today in the United States District Court for the District of Minnesota charging NRG Energy, Inc., (NRG), located in Minneapolis, Minnesota, with violations of the Commodity Exchange Act (CEA) through the knowing delivery of knowingly false reports concerning the price of natural gas to Gas Daily, an affiliate of the McGraw-Hill Companies, Inc.
The complaint charges that from at least August 2001 through May 2002, NRG reported false information, including price and volume information, about natural gas trades to Gas Daily, an energy index reporting service. According to the complaint, Gas Daily and others use price and volume information in calculating surveys or indexes of natural gas prices for various hubs throughout the United States. The complaint alleges that participants in the natural gas markets use these indexes to price and settle commodity transactions, and that natural gas futures and options traders refer to the published indexes for price discovery and for assessing price risks.
The complaint specifically charges that NRG knowingly delivered to Gas Daily information concerning hundreds of natural gas trades, many of which contained false, misleading or knowingly inaccurate information.
Gregory Mocek, Director, CFTC Division of Enforcement, said:
In its ongoing litigation, the CFTC seeks a permanent injunction against NRG barring further violations of Section 9(a)(2) of the Commodity Exchange Act, 7 U.S.C. § 13 (a)(2).
The following CFTC Division of Enforcement staff members are responsible for this case: Judith Hutchison, Kim Bruno, Anthony Mansfield, Gretchen Lowe, and Richard Wagner.
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