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Small oil and gas producers sue BP and Goldman Sachs for oil fraud.

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"Small oil and gas producers sue BP and Goldman Sachs for oil fraud."

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fraud3 BP and Goldman Sachs, two mega corporations currently under scrutiny by the federal government, have been accused of engaging in fraud and failing to properly prepare for disasters related to its business practices. Now, Forbes reports that “dozens of small oil and gas producers” are suing both BP and Goldman Sachs for oil fraud:

Dozens of small oil and gas producers across Oklahoma and the Midwest are suing Goldman Sachs, BP and ConocoPhillips, claiming the defendants conspired to defraud them out of proceeds for crude oil they delivered just before the collapse of Oklahoma-based pipeline giant Semgroup in the summer of 2008. [...]

Goldman, through its J. Aron commodities division, was Semgroup’s largest counterparty, and appears to have been responsible for giving Semgroup its final push off the cliff by unleashing a massive margin call on Semgroup as oil prices spiked. Billionaire John Catsimatidis, who has settled his own Semgroup-related suits in the past year, has asserted that Goldman’s actions may have helped push up the price of oil to its record of $147 a barrel.

The plaintiffs are currently pressing Sen. Tom Coburn (R-OK) to “push for hearings on the case in the Senate Committee on Homeland Security and Government Affairs.” Four separate lawsuits have been filed in both Oklahoma and Kansas courts, and Chevron is named as one of the defendants.

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