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enilria
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Joined: Fri Feb 22, 2008 7:15 pm

Creator of DL's Hedging/Refinery Strategy Settles CFTC Charges

Thu Sep 29, 2016 11:57 pm

I posted about this before, but it looks like he took a deal with the DOJ.

In early 2011 and through most of 2012, Ruggles was the chief architect of Delta's fuel-hedging strategy. Having lost money in the aftermath of the financial crisis on wrong-way bets on the future price of jet fuel — a commodity that's often hedged using a basket of other energy contracts, including crude oil and RBOB gasoline — Delta's executives were looking for a fresh approach at that time. Ruggles, who had had experience both in the professional trading world and at oil and gas companies, seemed a good fit.

His hedges were effective during the first year. But over time, Ruggles was less successful in mitigating the airline's costs, and at the same time, the CFTC argues in documents, he was making personal trades that could be helped by his insider knowledge of what trades were planned for Delta.

On at least 71 days in 2012, the documents argue, Ruggles used "material, nonpublic information regarding his trading on behalf of his employer to trade for his own personal benefit." Using an account in his own name as well as one in his wife's, Ruggles "sequenced his trading on these days in these personal accounts and his employer's accounts, all of which he controlled, so that the majority of the orders he placed in these personal accounts were executed against the orders he placed for his employer." The rest, the documents state, were filled by other trading parties at the same, pre-set, prices.

Ruggles, who neither admitted nor denied the CFTC's findings, agreed to disgorge more than $3.5 million in trading profits and pay a $1.75 million penalty for the unlawful behavior, according to the documents.


http://www.cnbc.com/2016/09/29/former-d ... rades.html
Last edited by enilria on Fri Sep 30, 2016 12:51 am, edited 1 time in total.
 
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PacificBeach88
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Joined: Sun Jul 05, 2015 9:42 pm

Re: Creator of DL's Hedging/Refinery Strategy Settles DOJ Charges

Fri Sep 30, 2016 12:12 am

Your Prince just took a deal where he is forced to repay $5.25 MILLION for his fraud.

http://www.marketwatch.com/story/cftc-o ... 2016-09-29
 
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enilria
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Posts: 10410
Joined: Fri Feb 22, 2008 7:15 pm

Re: Creator of DL's Hedging/Refinery Strategy Settles DOJ Charges

Fri Sep 30, 2016 12:49 am

PacificBeach88 wrote:
Your Prince just took a deal where he is forced to repay $5.25 MILLION for his fraud.

http://www.marketwatch.com/story/cftc-o ... 2016-09-29

? That's what I posted. What prince?

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