Federal court rejects motion by Amaranth, Hunter to dismiss CFTC charges


The U.S. District Court for the Southern District of New York has rejected motions by Amaranth Advisors and its former head energy trader, Brian Hunter, to dismiss charges brought against them last year by the U.S. Commodity Futures Trading Commission.

Amaranth, a multistrategy fund that once managed $9.1 billion, began winding down after Hunter’s disastrous bets on natural gas led to $6.6 billion in losses in the third quarter of 2006.

On July 25, 2007, the CFTC filed a civil enforcement action against Amaranth and Hunter, alleging that the defendants had tried to manipulate natural gas prices for profit. According