WASHINGTON – A former Delta Air Lines Inc. executive will pay more than $5 million to settle charges that he profited improperly by manipulating trades in energy futures.
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The Commodity Futures Trading Commission said Thursday that Jon P. Ruggles would give up $3.5 million in ill-gotten profits and pay a $1.75 million civil penalty.
Ruggles ran Delta's strategy of fuel hedging — trades that were designed to give the airline some protection against a spike in fuel prices. According to the commission, Ruggles used confidential company information to make personal trades in crude oil, heating oil and gasoline futures that were just like trades he was making for Delta.
The commission said Ruggles timed the personal and Delta trades in 2012 to get advantageous prices on his personal orders. The agency said Ruggles used personal accounts that he controlled but were in his wife's name.
Ruggles, of Orlando, Florida, was also permanently banned from trading and registering with the commission. Ruggles settled the matter without admitting or denying the accusations, according to the settlement order.
Atlanta-based Delta did not immediately respond to a request for comment.