March 18 (UPI) -- A former Texas energy executive entered into a plea deal last week in connection with a $5.5 million kickback scheme that included employer insider trading.
Matthew Clark, 56, the former head of Classic Energy, admitted to conspiring with others to direct his employer's trades to the company in exchange for the illegal kickbacks. They were generated from commission fees his employers paid to Classic Energy, a brokerage firm of which he was the president.
He will be sentenced on June 24.
"Matthew Clark made millions trading in natural gas commodities, but unlike most Houston traders, he made his money illegally through the use of kickback schemes involving associates, relatives and his employer's proprietary insider information," U.S. Attorney Alamdar Hamdani said in a statement.
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"The natural gas futures contract market is an integral part of Houston's economy, and to preserve the integrity of that system, it is important that commodity traders who buy and sell those accountable, like Clark, who use kickbacks and insider information to enrich themselves at the expense of the public's trust in the U.S. markets."
In 2019, Classic Energy was fined $1.5 million by the U.S. Commodities Futures Trading Commission for illegally trading against its own customers. In that case, the company's owner -- Mathew Webb -- was blamed for making 60 illegal trades in 2014 and 2015.
"When corporate insiders engage in insider trading and other deceptive trade practices for their own financial gain, they don't just harm the company -- they undermine the integrity of our financial markets said Nicole Argentieri, head of the Justice Department's criminal division, said.
"This groundbreaking investigation was the first to result in criminal convictions for commodities insider trading. It won't be the last."
