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NEW YORK, N.H., -- The U.S. Commodity Futures Trading Commission filed a civil lawsuit Tuesday against two traders, accusing them of manipulating the oil market.
The suit names James T. Dyer of Australia, Nicholas J. Wildgoose of Rancho Santa Fe, Calif., and three companies, Parnon Energy of California, Arcadia Petroleum of Britain and Arcadia Energy, a Swiss company, The New York Times reported. It was filed in federal court in Manhattan.
The commission charges Dyer and Wildgoose acquired a large position in oil futures and also bought millions of barrels of crude oil at Cushing, Okla., at one point owning about two-thirds of the excess oil there. This was allegedly done to create the illusion of an oil shortage.
After Dyer and Wildgoose sold their futures, the complaint says they began selling the crude oil as well and at the same time began betting on a decline in oil prices.
They allegedly went through the routine twice in January and March 2008 and were planning a third round when they learned they had attracted the attention of regulators.
Dyer and Wildgoose deny the government's claims, the Times said. If they lose the case, they might have to disgorge $50 million in allegedly illegal profits and pay $150 million in penalties.
The suit names James T. Dyer of Australia, Nicholas J. Wildgoose of Rancho Santa Fe, Calif., and three companies, Parnon Energy of California, Arcadia Petroleum of Britain and Arcadia Energy, a Swiss company, The New York Times reported. It was filed in federal court in Manhattan.
The commission charges Dyer and Wildgoose acquired a large position in oil futures and also bought millions of barrels of crude oil at Cushing, Okla., at one point owning about two-thirds of the excess oil there. This was allegedly done to create the illusion of an oil shortage.
After Dyer and Wildgoose sold their futures, the complaint says they began selling the crude oil as well and at the same time began betting on a decline in oil prices.
They allegedly went through the routine twice in January and March 2008 and were planning a third round when they learned they had attracted the attention of regulators.
Dyer and Wildgoose deny the government's claims, the Times said. If they lose the case, they might have to disgorge $50 million in allegedly illegal profits and pay $150 million in penalties.