FERC v. Powhatan Energy Fund LLC

The court declined to dismiss a FERC enforcement action against multiple energy traders. After the Commission assessing substantial amounts in civil penalties and disgorgement based on the respondents’ engaging in “wash trades” (trades arranged to cancel each other out and carry no economic risk), FERC sought to enforce the penalties.

In an issue of first impression in this district, the court held that FERC’s action was not time-barred because the cause of action accrued 60 days after the respondents failed to pay the penalties – not at the time of the underlying violations.

FERC v. Powhatan Energy Fund LLC, No. 3:15cv452, Sept. 24, 2018. EDVA at Richmond (Lauck).

Categories: U.S. District Court - Eastern District of Virginia

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