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United States v. Mark Radley, et al. - Court Docket Number: H-08-411
The case is assigned to the Hon. Judge Gray H. Miller, United States District Judge for the Southern District of Texas, United States Courthouse, 515 Rusk Avenue, Houston, Texas, 77002. A status conference was held on September 25, 2008 at 10:00 a.m. before Judge Miller in Courtroom 9D, 9th Floor. The next status conference is scheduled for January 22, 2009 at 10:00 a.m. Trial is set for October 5, 2009.
Mark David Radley, James Warren Summers, Cody Dean Claborn, and Carrie Kienenberger, former employees of a subsidiary of BP America Inc. (BP America), are charged in a 20-count indictment with one count of conspiring to violate the Commodity Exchange Act and to commit mail and wire fraud (Count 1: 18 U.S.C. § 371), twelve counts of Commodity Exchange Act violations (Counts 2-13: 7 U.S.C. § 13(a)(2)), and seven counts of wire fraud (Counts 14-20: 18 U.S.C. § 1343), stemming from a wide-ranging scheme to manipulate and corner the February 2004 TET propane market and to sell TET propane at an artificially inflated index price. The defendants were indicted on October 25, 2007 and were arraigned before Judge Ruben Castillo, United States Judge for the Northern District of Illinois on November 7, 2007. Each was released on a $4,500 surety bond.
The indictment alleges, among other things, that from February 5, 2004, through March 15, 2004, the defendants conspired to manipulate and corner the market for February 2004 TET propane in order for BP America to profit and to “control the market at will.” The conspirators carried out their strategy by buying large quantities of February 2004 TET propane to become the dominant long holder of the commodity. The indictment further alleges that the defendants manipulated the industry benchmark index price for TET propane by becoming the dominant long holder, using specific bidding techniques, and purchasing even more propane at the end of the month, all with the purpose of artificially increasing the price of propane and inflating the industry benchmark index price. The indictment alleges the defendants defrauded counterparties who purchased propane from BP at the fraudulently inflated index price. As a result of the defendants' conduct, the price of TET propane in the commodities market was artificially inflated during the latter part of February and early March 2004, and as a result, wholesale purchasers of TET propane during this time paid a higher price than would have available except for the defendants' conduct.
An Indictment is a formal charge made by a grand jury, a body of 16 to 23 citizens. A grand jury may vote an Indictment if 12 or more jurors find probable cause to believe that the defendant has committed the crime or crimes charged.
Despite indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.
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