Trader who lost $6.6bn on natural gas bet agrees to pay $750,000

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A former energy trader at a Connecticut hedge fund that collapsed in 2006 after losing $6.6 billion on natural gas has agreed to pay $750,000 to settle a regulator’s lawsuit.

The New York Times reports the Commodity Futures Trading Commission sued the trader, Brian Hunter, in 2007, accusing him of trying to manipulate the price of natural gas futures contracts traded on the New York Mercantile Exchange as they were expiring through large sell orders.

The regulator contended he did so twice, in February and April 2006, seeking to to lower the prices of the contracts to benefit from gas swaps held elsewhere.

Hunter was the lead energy trader at Amaranth Advisors, a hedge fund in Greenwich, Conn., that at its peak held as many as 100,000 natural gas contracts in a single month, accounting for 5% of the amount of natural gas consumed in the United States that year, according to a Senate investigation.

Hit the link below to access the complete New York Times article:

Former Amaranth Trader Settles Manipulation Suit

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