Trafigura Investigated Over Commodity Price Manipulation

Trafigura Group was investigated by the US Department of Justice over commodity price manipulation, according to a filing from a case involving one of the company’s former oil products traders. 

Ex-Trafigura trader Charlotte Bamber entered into a non-prosecution agreement with the DOJ in 2020, admitting to wire fraud and commodity price manipulation while working at the firm, the filing shows. Bamber has since breached the terms of that agreement, according to the filing.

It’s unclear whether the investigation is still ongoing. The DOJ declined to comment, while Bamber was not reachable for comment.

“Trafigura assisted the DOJ in its investigation into Ms. Bamber’s conduct,” a spokesperson for the trading house said. “In respect of the prior investigation into market conduct, we undertook a review with external counsel. No evidence of improper trading activity by Trafigura or its employees was found.”

The DOJ investigation was first reported by the Swiss-French legal blog Gotham City.

“The US Department of Justice, including through the Federal Bureau of Investigation, was investigating allegations that Trading Firm A, and certain individuals at that firm, were engaged in commodity price manipulation,” according to the filing.

Trafigura, one of the world’s biggest independent oil traders, moved 6.6 million barrels a day of crude and petroleum products in its 2022 financial year that ended Sept. 30. The company reported record profits of $7 billion for that period.

Last year, US authorities reached a $486 million settlement with rival Glencore Plc over its conspiring to manipulate US oil-price benchmarks from 2012-2016, including the Platts fuel oil market.