BP Manager In Charge of Cleaning Up the Gulf Oil Spill Dumped BP Stock Before the Severity of the Spill Went Public

George Washington's picture

The Securities and Exchange Commission announced today:

The Securities and Exchange Commission today charged a former 20-year employee of BP p.l.c. and a senior responder during the 2010 Deepwater Horizon oil spill with insider trading in BP securities based on confidential information about the magnitude of the disaster.  The price of BP securities fell significantly after the April 20, 2010 explosion on the Deepwater Horizon rig, and the subsequent oil spill in the Gulf of Mexico, resulted in an extensive clean-up effort.


According to the SEC’s complaint, filed in U.S. District Court for the Eastern District of Louisiana, BP tasked Keith A. Seilhan with coordinating BP’s oil collection and clean-up operations in the Gulf of Mexico and along the coast.  Seilhan, an experienced crisis manager, directed BP’s oil skimming operations and its efforts to contain the expansion of the oil spill


The complaint alleges that within days, Seilhan received nonpublic information on the extent of the evolving disaster, including oil flow estimates and data on the volume of oil floating on the surface of the Gulf.

Seilhan sold his family’s BP securities after he received confidential information about the severity of the spill that the public didn’t know,” said Daniel M. Hawke, chief of the Division of Enforcement’s Market Abuse Unit.




The complaint alleges that by April 29, 2010, in filings to the SEC, BP estimated that the flow rate of the spill was up to 5,000 barrels of oil per day (bopd).  The company’s public estimate was significantly less than the actual flow rate, which was estimated later to be between 52,700 and 62,200 bopd.  The information that Seilhan obtained indicated that the magnitude of the oil spill and thus, BP’s potential liability and financial exposure, was likely to be greater than had been publicly disclosed.


According to the complaint, while in possession of this material, nonpublic information, and in breach of duties owed to BP and its shareholders, Seilhan directed the sale of his family’s entire $1 million portfolio of BP securities over the course of two days in late April 2010.  The trades allowed Seilhan to avoid losses and reap unjust profits ….

Interestingly, the head of BP - Tony Hayward - sold 1.4 million pounds worth of BP shares a few weeks before the start of the Gulf oil spill.  While - at first glance - this sound like it could not possibly have been connected to the Gulf spill, BP actually had major problems with the Gulf well months before the spill. In other words, the spill hadn't yet happened ... but it should have been obvious to knowledgeable insiders that the well was highly dangerous and unstable.

Sadly, Mr. Seilhan, Mr. Hayward and the rest of the BP team made normal oil-skimming procedures impossible because they sunk the oil with Corexit dispersant … so the oil skimmers couldn’t get to it.

And it is beyond doubt that BP and the government blatantly low-balled the amount of oil spilled.

Indeed, most people still don’t understand that – while the well was “capped” in 2010 – top experts say that the oil spill could have increased  the amount of oil flowing form natural seeps in the area … so that more oil continues to leak into the Gulf for years.   Indeed,  large oil slicks have flowed for years after the BP well was capped (and BP’s explanations for this phenomenon don’t hold up to scrutiny.)

Postscript:  Some BP personnel were criminally indicted for manslaughter and lying to federal investigators.

But the U.S. has let BP back into the Gulf.  And BP is going to drill even deeper … with an even greater potential for disaster (and see this).

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groundedkiwi's picture

And we are surprised!!!! the problem is ZH is talking to the choir.
How to move up a level?

Jumbotron's picture

Sorry....this is off topic but VERY, VERY INTERESTING !

Tyler(s).....need to check this out.  A jet with small American markings owned in a trust to a Utah Bank for some mysterious person was found in Iran.   And NOBODY wants to talk about it.




Officials in Iran only would say they are aware of the plane and that the passenger is "V.I.P."

HHHHmmmmm ???



There is one slight clue though. The jet was spotted in Zurich, Switzerland on January 22, 2014, right around the time of the World Economic Forum in Davos. That probably narrows the list down to 2,633 powerful people.

The plane was also in Accra, Ghana on January 3 and in Luton, England on October 1 of last year and February 16 of this year.


Could it be her ????

Valerie Jarrett

Jarrett was born in Shiraz, Iran, to African-American parents James E. Bowman and Barbara Taylor Bowman. Her father, a pathologist and geneticist, ran a hospital for children in Shiraz in 1956, as part of a program where American physicians and agricultural experts sought to help communitize developing countries' health and farming efforts. When she was five, the family moved to London for one year, later moving to Chicago in 1963

n 1991, as Deputy Chief of Staff to Mayor Richard Daley, she interviewed Michelle Robinson for an opening in the mayor’s office, after which she immediately offered her the job.[23] Michelle Robinson asked for time to think and also asked Jarrett to meet her fiancé, Barack Obama. The three ended up meeting for dinner. After the dinner, Michelle took the job with the mayor's office, and Valerie Jarrett reportedly took the couple under her wing and “introduced them to a wealthier and better-connected Chicago than their own". She later took Michelle with her when she left the mayor's office to head Chicago’s Department of Planning and Development.

Peter Pan's picture

Hey George,

Just find out who was making a bundle from playing insurance company stocks when 911 took place and forget about this shrimp.

This poor bastard was just an offering to appease the public.

scattergun's picture

They go after this guy for a few shares of stock sold, and Jon
Corzine walks the earth a free man?

Zero Govt's picture

GW, the whole (truth) reason BP is drilling 'even deeper' because the meddling morons (US Govt) has banned onshore and shallow water oil drilling ..and has done for decades

the US Govt is the entire 100% cause of the risk of deep water oil spills and for all the decline in US oil production for the past 50 odd years.. then they (the DC morons) throw their hands up at 'importing too much foreign oil'

DaveyJones's picture

no, the decline is for the most part due to the fact that the entire population is now competing for the stuff and it is a finite resource.


o/t@DaveyJones, thanks for your post the other day on the deep ocean effects. ('Under A Green Sky' / Canfield Oceans)

DaveyJones's picture

and a national insecurity issue 

Who was that masked man's picture

Yeah, Seilhan should have ridden it all the way to the bottom just to be a real gentleman and "fair" to other  shareholders. 

nmewn's picture

Careful there Ed:

Intelligence Leaker Snowden Quizzes Putin About Russian Surveillance


There is a major difference between a martyr and a patriot ;-)

DeficitAlchemist's picture

A Usual few UK baiters here.. who ignored how intrinsicly Haliburton, Schlumberger and other US based contractors were intrinsically involved in the key areas leading to the debacle... whilst the Politico's and Media ran with 'Its the bloody foreigners that done it'  So the US could  get its Oil majors cheap fire Sale assets back in the Gulf..


Like Google, Amazon, SchmuckBucks and all the other globalists rapists who camp out in London, do the transfer pricing DoubleDutch & Dublin sidestep and have never made a profit in any of the years trading in the UK, flogging shyte coffee and  Trojan Horse for secretservice company tech services.. whilst playing clean with tax back home... (Apart of course from all those non Repatriated foreign profits that they loan locally against)...


Its difficult enough being liked globally as an American for the BP UK haters try avoid being a YANK..

xavi1951's picture

ZZZzzz !    YAWN!

Carl Popper's picture

George.....feinstein and others are already mad at the cia.   She will be receptive to this.i cant get thru.  I am not in a state of a senate select intelligence committee member.


We can make a difference.  Evil triumphs when good men do nothing.


Dear Congressperson


Greystone and other entities are a way for the president and CIA to get around congressional oversight and legal restrictions of the executive branch established after the Frank Church commission.


The president cannot send CIA and military employees to Ukraine without Congressional oversight


A "private" company can, and Ukraine can "pay" for it with our loan guarantees and other aid we send Ukraine.


This circumvents legal restrictions and congressional oversight.


Greystone and others are the new Air America.


We have contractors.....um....private soldiers......um.......quasi government agents........in Ukraine......without congressional oversight, and this violates several laws established after the Frank Church commission hearings.


Even if the rumors of their capture is untrue, this is still potentially a huge scandal if some were to be captured.   Not only that, it is patently illegal.    Not only that, it is morally and ethically wrong.


That is also another reason that the BLM pulled out.   If there had been a shootout and Joe Blow died in a BLM uniform, then  his friends and family would say publicly "Joe Blow?   He didnt work for the BLM.   He worked for Blackwater and Greystone.   He was contract military."


Do you see the huge scandal?


For congressional oversight you have to ask the CIA and NSA and the president to respond to this.   Please.


The BLM essentially acknowledged contract mercenaries when questioned.  Look up MSM reports.   Also our government has even acknowledged Greystone is in Ukraine.   Look it up.


cynicalskeptic's picture

'Congressional Oversight?!?!?!?'  ......................bwahaaaaaaaaaa..........

Iran-CONTRA?  Anyone remember THAT?   Drug running, trading with the enemy and more.... they got caught and what happened?  Presidential pardons.


With all the intel the CIA is collecting you can bet they have enough dirt on anyone, ANYWHERE to make sure that they can do whatever they want.  And if someone is 'problematic', well there's always the 'small plane' solution.

I Write Code's picture

Technically his trading is a violation simply because he was an officer and employee, but the actual stock price moved only slowly and smoothly from abou 60 to just under 30 over 60 days, so the "illegal" profits from his knowledge compared to public announcements a couple of days later can hardly come to more than maybe two bucks a share, and a million buck portfolio would be about 40,000 shares and any member of the public might have sold on the public news (I wish I had!) - although most didn't sell until you guessed it, the bottom.

So on a financial scale this accusation is somewhat less than major.

On a scale of who did what to whom and when did they know it, the big screwups were the guys who let it happen in the first place, and the government yahoos who interfered with logical cleanup efforts.  I forget who wanted the Corexit (corrects-it, sic), only that they used a boatload of it, and nobody really knows if it was a good idea or not, but nobody was going to skim all the oil that was dumped.

esum's picture


i forgot that's legal

just ask pelosi

DaveyJones's picture

congress is obscene and disgusting thus most of their byproduct has the same scent

esum's picture

guilty by innuendo

the new amerikan justice


ClowardPiven2016's picture

what a fool...he should have known you have to be in congress or the senate to get away with insider trading. 

new game's picture

because it affected the envirnment it is being prosecuted. what about billions of hft trades?

what about cronies trading on legislation they influence directly. i mean really, what did this guy do that is any different that 1000's of other cronies. oh, and nancy's husband?

non-event in the scope of it all...

Comte d'herblay's picture

Forget about these million dollar deals.

Compared with the Quadrillions that the Jewish Mafia in New York, London, and Singapore are getting away with.

They are ripping off million dollars every second, worldwide.

And some jerk wants to indict one lowly miscreant.

This is ridicuROUS.

kurt's picture

Used to be we'd imprison and extradite Loyalist Redcoats. They actually burned the Whitehouse. How many provocations to war have they been involved in? What long term subterfuges have they launched upon us? Do you trust London Town?

So you think you've taken precautions, have intelligence and can contain harm to the USA.

Why are you letting the F'n Royals Shit in Our Swimming Pool?

Winston of Oceania's picture

I would blame the tribe before the crown, who is flat broke thanks to the same.

UselessEater's picture

My Crown is doing very well thank you. Has done so for centuries and we've hidden what we need via 'nationality' deceptions and arms of the Bristish East India Company and its spawns; we're set for the reset and all that, tally ho. See how well our PR stint down udder is going....hehe.


Rock On Roger's picture

The tribe has just about used up the crown.

Up next, the bear and the dragon.

AreaMan's picture

Everyone knows you cant cheat the system...unless your a TBTF.

john39's picture

All BP upper management should be required to eat seafood from the GOM daily for life...   the only way to ensure that they are actually telling the truth about the pollution and the true effects of CorExit...  

cynicalskeptic's picture

If you tried, I'd expect them all to claim to have 'seafood allergies'