Avoiding the ‘Al Capone’ Trap: The Dangers of Supplying Inaccurate Information to FERC

A bit like Al Capone's tax infractions relative to his suspected greater misdeeds, allegations that a market participant made an inaccurate statement to the Federal Energy Regulatory Commission is a tempting piece of low-hanging fruit for the agency's Enforcement division when manipulation claims may be difficult to prove. Some practical considerations outlined here can help protect against such claims.