Ferc imposed a $30 million fine on Amaranth Advisors' Brian Hunter for his role in the 2006 energy trading scandal. This fine was a significant penalty for the company.
Brian Hunter made a series of trades that led to a $6 billion loss for Amaranth Advisors, making it one of the largest hedge fund failures in history.
Take a look at this: Amaranth Advisors
Amaranth Advisors
Amaranth Advisors was a global hedge fund that was founded in 2000 by Brian Hunter and Robert Gottfried.
Brian Hunter, a key figure at Amaranth, was known for his aggressive trading style and made a name for himself in the hedge fund industry.
Amaranth Advisors was based in Greenwich, Connecticut, and had a significant presence in the global markets, with a focus on energy and commodities trading.
In 2006, Amaranth Advisors was one of the largest hedge funds in the world, managing over $9 billion in assets under management.
The fund's aggressive trading strategy and high-risk approach eventually led to significant losses, including a $6 billion loss in 2006.
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Ferc Imposes $30 Million Fine
The Federal Energy Regulatory Commission (FERC) issued a $30 million civil penalty against Brian Hunter, a former energy trader at Amaranth Advisors LLC.
This is the largest fine imposed by FERC on a single individual for market manipulation.
Hunter has 30 days to pay the fine or appeal the decision.
A FERC judge ruled in January 2010 that Hunter had manipulated gas markets.
FERC Chairman Jon Wellinghoff said the fine is a sufficient deterrent to discourage traders from engaging in market manipulation.
The case was the first in which FERC went after a participant in the futures market for actions that affected the price of delivered gas.
Amaranth Advisors LLC, the hedge fund Hunter worked for, lost $6.6 billion betting on natural gas prices in 2006.
The company agreed to pay $7.5 million to end U.S. cases brought by FERC and the Commodity Futures Trading Commission in 2009.
Hunter's lawyer, Michael Kim, said the fine "means nothing" because FERC has no jurisdiction over the case.
Hunter can ask FERC to re-hear his case and, if denied, appeal to the U.S. Court of Appeals for the District of Columbia Circuit.
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