Oil climbed above $101 per barrel Wednesday as investors cheered a sharp rise in refining activity in the U.S.
Here's a breakdown of how energy contracts traded.
On the New York Mercantile Exchange:
Crude rose $1.73 to settle at $101.32 per barrel.
Gasoline gained 2.87 cents to settle at $2.9867 per gallon.
Heating oil picked up 7.1 cents to settle at $2.9923 per gallon.
Natural gas was up 3.2 cents to settle at $4.423 per 1,000 cubic feet.
On the ICE Futures exchange:
Brent crude rose $2.40 to settle at $114.93 per barrel.
NEW YORK (Reuters) – Lawyers for hedge fund tycoon Raj Rajaratnam asked a judge on Wednesday to throw out the Galleon Group founder's conviction on insider trading charges.
In a memorandum to U.S. District Judge Richard Holwell in New York, the lawyers renewed their motion for a judgment of acquittal on all 14 counts of conspiracy and securities fraud.
Rajaratnam had previously requested an acquittal when the government rested its case at trial on April 6, and then again on April 18 after all evidence was presented. The jury rendered its guilty verdicts on May 11, completing a two-month trial.
Holwell had reserved judgment on the April motions.
Sri Lankan-born Rajaratnam, 53, is to be sentenced in July following his conviction in what prosecutors describe as the biggest probe of insider trader at hedge funds on record.
The memorandum said the lawyers were providing the judge with additional information on one conspiracy charge and four securities fraud charges with which Rajaratnam was convicted.
"The government failed to introduce evidence sufficient to permit a reasonable juror to conclude beyond a reasonable doubt that Mr. Rajaratnam committed the crimes charged," it said.
A spokeswoman for Manhattan U.S. Attorney Preet Bharara declined to comment.
The sweeping Galleon case, which ensnared more than two dozen traders, executives and lawyers, marked the first extensive use of secretly recorded phone conversations in an insider trading case.
Such techniques have historically been applied to fighting organized crime families and drug trafficking.
Rajaratnam's main lawyer, John Dowd, said after the jury verdict that he would challenge the case in the 2nd U.S. Circuit Court of Appeals in New York on the grounds that court approvals for FBI phone taps of his client were improperly obtained.
Less than a week after Rajaratnam's conviction, three stock traders went on trial in the same courthouse on the same criminal charges. On Wednesday, a former Galleon trader, Michael Cardillo, testified for the government, which is expected to rest its case this week.
Cardillo, among 22 people who have pleaded guilty, was the fourth trader or lawyer to testify against the former securities traders, who founded their own firm, Incremental Capital LLC in August 2008.
The jury in the trial of traders Zvi Goffer, 34, his brother Emanuel Goffer, 32, and Michael Kimelman, 40, have also heard more than two dozen phone taps.
Zvi Goffer worked for Rajaratnam for about seven months in 2008 but the other two men never traded at the hedge fund, which once had $7 billion under management.
It was wound down without losses to investors after Rajaratnam's October 2009 arrest. The Goffer brothers and Kimelman were arrested less than three weeks later.
The cases are USA v Raj Rajaratnam et al, U.S. District Court for the Southern District of New York, No. 09-01184, and USA v Zvi Goffer et al in the same court, No. 10-00056.
(Reporting by Grant McCool; Editing by Gary Hill)
WILMINGTON, Delaware (Reuters) – Jackson Hewitt Tax Service Inc (JTHX.PK) expects quick approval of its bankruptcy plan, which would turn over the second-largest U.S. tax preparer to lenders led by Bayside Capital, the company's attorney said on Wednesday.
The company filed for bankruptcy on Tuesday just weeks after the end of the tax season as a way to restructure a bank loan coming due in October. It said it hoped to restructure in 60 days or less.
Jackson Hewitt got into trouble with lenders as it failed to secure full funding for tax-refund loans, a key covenant in its credit agreement.
Jackson Hewitt already has approval for the bankruptcy plan from all 10 holders of its $357 million bank debt, according to Mark McDermott, an attorney with Skadden, Arps, Slate, Meagher & Flom LLP, which represents the company.
The company's bank debt is worth more than the entire value of the business, which the company's advisers determined to be $225 million.
"Unfortunately, this is a case where nothing is left for unsecured creditors," McDermott said. "The value proposition just isn't there."
He said the company expects to continue its main business of preparing tax returns and is already getting ready for next tax season, which begins in January.
It did file a request to close 88 of its 5,900 locations. About 2,000 of the total are found inside Wal-Mart Stores Inc(WMT.N) sites. About 700 franchisees own 4,600 Jackson Hewitt franchise locations, according to McDermott.
New equity would be issued to the lenders, who would also get a new term loan of $100 million and a revolving credit agreement of $115 million, according to McDermott.
The company also plans to cancel its stock.
The court approved a series of routine "first day motions" that will allow the company to continue functioning while it works through its bankruptcy.
The case is In re: Jackson Hewitt Tax Service Inc, U.S. Bankruptcy Court, District of Delaware, No. 11-11587.
(Editing by Gerald E. McCormick)