The Associated Press
OMAHA, Neb. (AP) -- Gavilon Group, the commodities trading business ConAgra Foods sold in 2008, has agreed to pay $12 million to settle price-manipulation charges.
The U.S. Commodity Futures Trading Commission announced the settlement Aug. 16.
ConAgra said in a filing with the Securities and Exchange Commission it will pay Gavilon $4.3 million to resolve liability concerns because the questionable trade happened before ConAgra Trade Group was sold and renamed.
Regulators say a ConAgra trader bought crude oil futures at $100 in January 2008 when the market price was 40 cents lower as part of an effort to be the first to trade oil futures at that historic price.
The ConAgra trader's actions caused an illegitimate price report on the New York Mercantile Exchange.