Federal Courts Rule Defendants in FERC Penalty Enforcement Proceedings Entitled to Full Evidentiary Hearings on Review; Legal Defenses to Market Manipulation Charges Fall Short

摘要

In a pair of rulings handed down by federal district courts reviewing multi-million dollar FERC penalties against traders facing charges of manipulating regional electric markets,28 the courts found that, contrary to FERC’s contention, the defendants are entitled to the full spectrum of procedural rights associated with a conventional civil trial. These rights include discovery and the development of an expanded evidentiary record at the district court level.