2 Energy Traders Found Guilty of Wire Fraud

A federal jury in Houston found two former energy traders guilty of wire fraud in connection with the transmission of natural gas prices to industry newsletters but did not convict the pair on conspiracy and other false-reporting charges, the Justice Department said.

Former Dynegy Inc. gas trader Michelle Valencia was convicted of seven counts of wire fraud. Former El Paso Corp. trader Greg Singelton was convicted of one count of wire fraud.

The jury acquitted or did not reach a verdict on other counts in the indictment that charged Valencia and Singleton with conspiracy and knowingly transmitting false market information that affected the price of natural gas, according to a Justice Department release.

The three-week trial stemmed from charges that the traders submitted false or misleading price data to natural gas industry publications during the California energy crisis in 2000 and 2001. The prices are used to calculate indexes, then used as price benchmarks by other industry participants in contracts.