The CFTC report verified that SemGroup was not a reckless speculative trader but rather was an early victim of the 2008 credit crisis and failing banks.
Tulsa, Okla (PRWEB) October 19, 2011
"U.S. Securities and Exchange Commission announced yesterday a resolution of an SEC claim against former SemGroup Energy Partners Chief Executive Officer Tom Kivisto," said John Tucker, attorney at Rhodes Hieronymus. "The SEC did not allege or claim in its resolution that Mr. Kivisto intentionally violated any securities laws."
The SEC and Mr. Kivisto agreed to the filing of a civil complaint, a consent and an agreed judgment. According to the terms of the settlement, Mr. Kivisto will pay $225,000 and waive rights to units in Blueknight Energy Partners LP.
In 2008, the Commodity Futures Trading Commission prepared a report on energy trading. This report was revealed to the public about a month ago by U.S. Senator Bernie Sanders (I-VT). The August 19, 2008 CFTC report confirmed that, contrary to press reports at the time, SemGroup did not “bet” with “massive short positions” in the summer of 2008. (http://sanders.senate.gov/newsroom/news/?id=e802998a-8ee2-4808-9649-0d9730b75ea4) The CFTC report states that rather than maintain a large short position, SemGroup was net “long” in its crude oil option trading. (http://sanders.senate.gov/imo/media/doc/energy-holdings-WTI-Crude-Oil.pdf).
The CFTC report verified that SemGroup was not a reckless speculative trader but rather was an early victim of the 2008 credit crisis and failing banks. The CFTC has confirmed Mr. Kivisto’s repeated statements that the trading program was always delta neutral and not “betting short” as claimed in the report of the Examiner. The report validates what Mr. Kivisto said during a July 26, 2008, news conference: "I trust, however, as the facts and truths surrounding this chain of events are revealed, the Sem Group employees will regain their trust in what they initially believed."
The case can be found in the United States District Court for the Northern District of Oklahoma. Case Number: 4:11-cv-00641-CVE-TLW