Ex-Glencore Trader Charged With Manipulating Price of Fuel Oil

(Bloomberg) -- A former Glencore Plc oil trader was charged by U.S. authorities with manipulating the price of fuel oil, according to a document filed at a Californian court last week.

Emilio Heredia is accused of directing buy and sell orders that would push fuel oil prices up and down, allowing the companies he worked for to profit from the price swings, between 2012 and 2016, according to the filing made at a U.S. District Court in San Francisco March 15.

The investigation is the latest legal setback for Glencore, already embroiled in a wide-ranging probe by the U.S. Department of Justice on allegations of bribery and money laundering. The U.K., Swiss and Brazilian authorities are also investigating the commodity trader.

Glencore said Heredia was an employee after they bought a rival firm. A lawyer representing Heredia didn’t immediately respond to a phone call and email requesting comment.

“We note that one of Chemoil’s -- and later Glencore Ltd.’s -- former employees in the US has been charged with conspiracy to manipulate the price of fuel oil in the LA market between 2012 and 2016,” Glencore said in a statement Tuesday. “The investigation remains ongoing and the company is co-operating with the authorities.”

According to the filing, Heredia directed trades through a process managed by S&P Global Platts, a benchmark price publisher.

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