http://www.kjrh.com/news/local/story/Goldman-Sachs-Accused-of-Manipulating-Crude/DWNWXoA3skqrkJsTq7RjKg.cspxShocking allegations tonight that one of the nations top financial institutions brought Tulsa based Semgroup Holdings to bankruptcy.
Goldman Sachs had access to Semgroups future trade prices. A Forbes.com article suggests the market could have manipulated. the claim is that someone at Goldman Sachs or its commodities trading arm, J. Aron and Company, knew Semgroups futures market and that it cost Semgroup millions.
Oil and Gas attorney Chris Heroux has no connection to the case. He says if that happened, "[They could have]... thereby manipulated the price so that we would have a short-squeeze and the failure of Semgroup." He says "If the allegations are true... the results to businesses like Semgroup would be catastrophic."
John Tucker is the attorney for the former CEO of Semgroup Tom Kivisto. Tucker agrees someone used inside information about Semgroup to manipulate the market. Heroux adds, "It would mean the regulators failed to do their job to ensure the markets are not manipulated."
Meanwhile, a class action lawsuit was filed Wednesday claiming J. Aron and Company owes more than 100,000 Oklahoma oil producers money for oil. Attorney Lee Levinson is representing the current plaintiffs. He says, "Semgroup bought it originally then they sold it. The people they sold it to had a duty to hold that money in trust until the producers were paid."
J. Aron and Company paid Semgroup Holdings several million dollars of what they owed them as part of the bankruptcy but the Oklahoma oil producers in the lawsuit claim they should also be reimbursed.
A Goldman Sachs spokesperson told 2News on the phone Thursday that accusations that Goldman Sachs or J. Aron manipulated the crude oil market is, " without foundation".
