Insider Trading: Did BP use knowledge of actual flow rate to engage in illegal stock sales?


BP officials queried in federal investigation into possibility of insider trading, The Times-Picayune, March 17, 2011 at 12:30 am EST:

Federal investigators have visited the homes of several BP officials in recent weeks to question them on what they knew about how much oil was spewing out of the company's busted Gulf well last spring and how their findings may have differed from what the government and the public were being told at the time, sources say. ...

BP's consistently low flow-rate estimates grabbed headlines and infuriated federal officials last April and May as response teams tried to get a handle on the massive oil leak a mile below the Gulf of Mexico. President Barack Obama said the company wasn't "fully forthcoming" about the size of the spill, and congressional investigators uncovered documents showing that BP, while telling the public that a relatively minor 1,000-5,000 barrels were escaping each day, actually knew that as much as 14,000 barrels could have been coming out every 24 hours. ...

Two sources familiar with the Justice Department's investigation say the feds have been trying to determine whether BP officials used their knowledge of non-public information about the spill to engage in illegal insider trading. ...

Read the report here.

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