THE AMARANTH GAS SCANDAL
The trader who went to lunch and never came backBy TARA PERKINS
The Toronto Globe & MailFriday, July 27, 2007 Page B1
FINANCIAL SERVICES REPORTERBrian Hunter, the Calgarian who made more than $100-million trading natural gas for Amaranth Advisors LLC before the hedge fund collapsed, fled the U.S. as Washington regulators were trying to interview him earlier this year, the chairman of the Federal Energy Regulatory Commission says.
“He was in the middle of an interview and there was a lunch break, and he never came back from lunch,” FERC chairman Joseph Kelliher said in an interview yesterday after announcing preliminary findings that Amaranth, Mr. Hunter and another trader manipulated the market over three months early last year. FERC is seeking total penalties of $291-million (U.S.).
A spokesman for Mr. Hunter said he “voluntarily flew to the U.S.A. to meet with FERC officials and give an interview. Brian ended the interview when he and his attorney became aware that the FERC had misrepresented the agenda for the discussion.”
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The $8-billion (U.S.) hedge fund imploded in September and it’s well known that Mr. Hunter was the lead natural gas trader. FERC’s allegations also name Matthew Donohoe – believed to be an American now living in Calgary – who, FERC says, was executing the trades for Mr. Hunter.
Are you hungry? I’m feeling a bit hungry. Can we reconvene in, say, about… never?