Oil Trader Charged for manipulating Oil Prices
The case contained several instances of Mr Emilio Heredia guilt including ordering co-conspirators to lower the benchmark price 41 times
U.S. prosecutors had charged Emilio Heredia, a former Glencore employee, with conspiracy to manipulate a key oil price benchmark in the latest move by prosecutors around the world to step up their scrutiny and transparency in the notoriously opaque oil commodity trading industry. The charges filed at a U.S. District Court in San Francisco on March 15 alleges that Mr Emilio Heredia directed buying and selling orders that would push fuel oil prices up and down paving the way for companies he worked for to profit from the price swings between 2012 and 2016.
In a recent development the 49-year old oil trader has pleaded guilty to conspiring to manipulate an oil-price benchmark to influence global oil prices facing up to five years in prison. Emilio Jose Heredia Collado entered his guilty plea via video conference on Wednesday in a federal court in San Francisco.
The case contained several instances of Mr Emilio Heredia guilt including ordering co-conspirators to lower the benchmark price 41 times, moving down the price of bunker fuel from $245 a metric ton to $204.50 a metric ton, resulting in hundreds of thousands of dollars in unlawful gains for his company.
The case is being highlighted as governments around the world are increasingly moving towards stepper policing of the world of commodity trading and the companies that dominate it. This also heralds a reinvigorated crackdown against energy market manipulation.
The UK, Swiss and Brazilian authorities are also investigating Mr Emilio Heredia.The investigation also hurts Glencore who already have their hands full with wide-ranging probe by the U.S. Department of Justice on allegations of bribery and money laundering.