Fourth El Paso gas trader pleads guilty to false price reporting

Houston (Platts)--29Oct2004


The last of four former El Paso natural gas traders who had admitted to
reporting false price data to index publishers has pleaded guilty in US
District Court in Houston Thursday. In a hearing before US District Judge
Nancy Atlas, which concluded late Thursday, Christopher Bakkenist pleaded
guilty to one charge of false reporting, US Attorney Michael Shelby's office
announced Friday. Bakkenist admitted that on Dec 29, 2000, he transmitted an
email from Houston to Inside FERC's Gas Market Report, a Platts publication in
Washington, that contained a list of what purported to be fixed-price physical
natural gas trades for use in calculating a gas index. Bakkenist admitted he
knew the list was inaccurate because he knew that trades appearing on the list
were not fixed-price trades. Bakkenist is the last of a group of four former
El Paso traders charged with false reporting on Oct 5, to plead guilty.

Dallas Dean pleaded guilty Oct 14 and Donald Guilbault and William Ham pleaded
guilty Oct 18. Bakkenist faces a maximum punishment of five years in federal
prison, without parole, and a $500,000 fine. He is scheduled to be sentenced
Feb 3. Guilbault is scheduled to be sentenced Jan 24, Ham Jan 18, and Dean Jan
13. All four, who are cooperating with federal investigators in their
continuing investigation, will remain free on bond pending sentencing. The US
Attorney's office in Houston is reported to be investigating as many as 11
more former El Paso employees as well as an unknown number of gas traders from
other companies as part of its ongoing investigation of false gas price
reporting. The office has declined to comment on its investigation.

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