Trial Begins Over Fake Trade Reports

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Trial Begins Over Fake Trade Reports
2006-07-13
Lawyers for two former energy traders on trial for reporting fake transactions to private industry publications told jurors Tuesday that they reported bogus data but didn't know it could be a crime. Ex-Dynegy Inc. trader Michelle Valencia and former El Paso Corp. trader Greg Singleton are the first of several former traders to go to trial after a lengthy federal investigation into errant trading practices in the aftermath of Enron Corp.'s December 2001 bankruptcy filing. Enron's failure sparked increased scrutiny throughout the energy trading industry, which beforehand operated with little oversight and room for abuse. Valencia and Singleton are accused of reporting fake data in 2000 and 2001 to private, for-profit industry publications that use the information to calculate natural gas index prices.
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