HOUSTON, Texas — A 56-year-old Needville man has been ordered to federal prison for his role in an illegal kickback scheme and a commodities insider trading scheme involving natural gas
<p><span>The Commission brought a civil enforcement case connected to a criminal insider trading conspiracy in natural gas markets referred to as the Classic Energy cases. The follow-on CFTC civil case is against co-conspirator, and former Classic Energy broker Lee Tippett, who awaits sentencing after his criminal conviction for conspiracy to commit honest services wire fraud and commodities fraud. I supported the Commission’s enforcement action against the defendant. However, I did not support settling that action prior to an upcoming trial in this case against another defendant where the Commission may require the defendant’s cooperation, and prior to his sentencing. Nor did I support any language in the settlement that allows the defendant to escape admitting to all of his wrongdoing, given that he played a part in a massive criminal scheme.</span></p>
<p><span>A federal grand jury in Houston returned an indictment on Dec. 7 charging a natural gas trader for an insider trading scheme involving natural gas futures.</span></p>