Ex-Congressman Buyer Receives 22-Month Jail Term for Insider Trading.
Former Congressman Sentenced to Prison for Insider Trading
Stephen Buyer, a former Indiana congressman, has been sentenced to 22 months in prison for his involvement in two separate insider trading schemes from his time involving T-Mobile’s merger with Sprint, according to the U.S. Attorney’s Office for the Southern District of New York.
The sentencing, handed down by U.S. District Judge Richard M. Berman, follows Mr. Buyer’s conviction on four counts of securities fraud.
“Stephen Buyer was convicted by a jury of twice engaging in insider trading. He abused positions of trust for illicit personal gain, and today he faced justice for those acts,” said U.S. Attorney Damian Williams in a statement. “No insider trader is above the law, and we will continue to bring those who undermine the fairness and integrity of our markets to justice.”
At his trial in March, Mr. Buyer provided false explanations for his involvement in insider trading schemes, which were deemed to constitute obstruction of justice by Judge Berman. Despite his conviction, he has expressed his intention to file an appeal against the sentence, reported Reuters.
Mr. Buyer served as a Republican member of Congress representing Indiana in the House from 1993 to 2011, after which he transitioned to a career as a corporate consultant.
Prosecutors detailed how Mr. Buyer engaged in insider trading on two separate occasions, reaping substantial profits exceeding $300,000.
In 2018, while working as a consultant for T-Mobile during March and April, Mr. Buyer received insider information regarding the company’s plans to acquire Sprint, according to prosecutors. The merger was valued at $26.5 billion. Before this information was made public, Mr. Buyer allegedly purchased over $500,000 in shares of Sprint stock.
“Buyer breached his duty of confidentiality to T-Mobile and misappropriated that information by purchasing shares of Sprint across several brokerage accounts, including his own accounts, an account held jointly with his cousin, and an account in the name of a close, personal friend,” stated the U.S. Attorney’s Office for the Southern District of New York.
He ultimately made over $126,000 in profits after the merger was publicly disclosed, according to prosecutors.
The following year, in 2019, while providing consulting services for the firm Guidehouse between June and August, Mr. Buyer purportedly learned about Guidehouse’s intentions to acquire the consulting firm Navigant. In response, he invested over $1 million in Navigant stock.
“Buyer purchased Navigant shares across several brokerage accounts, including accounts in his own name, joint accounts held with family members, and the account of the same close, personal friend whose account he used to trade Sprint shares,” stated the U.S. Attorney’s Office for the Southern District of New York.
He subsequently profited by more than $223,000 from his Navigant trades, according to prosecutors.
In addition to his prison sentence, Mr. Buyer has been ordered to pay over $350,000 in forfeiture and restitution.
What were some of the positions Congressman Stephen Buyer held during his time in office?
Diana’s 4th Congressional District from 1993 to 2011. During his time in office, he held positions on the House Committee on Energy and Commerce, the Committee on Veterans’ Affairs, and the Committee on Armed Services. He also served as the Chairman of the Subcommittee on Military Construction. Buyer had gained a reputation for his strong support of military veterans and his advocacy for improving healthcare services for them.
However, in recent years, Buyer’s reputation took a drastic turn when he became embroiled in two separate insider trading schemes related to T-Mobile’s merger with Sprint. Insider trading involves trading stocks based on non-public information, which gives traders an unfair advantage over the general public investors. This practice is illegal and undermines the integrity and fairness of financial markets.
The first instance of Buyer’s involvement in insider trading occurred when he sold T-Mobile stock in advance of the merger announcement in April 2018. He made approximately $100,000 in profits by trading on information that was not available to the public. The second instance occurred when he again traded stocks based on non-public information, this time related to the progress of the merger negotiations between T-Mobile and Sprint.
The U.S. Attorney’s Office for the Southern District of New York successfully prosecuted Seller on four counts of securities fraud. Following his conviction, U.S. District Judge Richard M. Berman sentenced him to 22 months in prison. Judge Berman emphasized the seriousness of Buyer’s offenses and the abuse of his position of trust for personal gain.
In a statement, U.S. Attorney Damian Williams highlighted the importance of holding insider traders accountable for their actions and ensuring the fairness and integrity of financial markets. Williams affirmed the commitment of the U.S. Attorney’s Office to bring those who undermine these principles to justice.
Despite the conviction and sentencing, Buyer has expressed his intention to appeal against the decision. However, the false explanations he provided during the trial, which were deemed to obstruct justice by Judge Berman, further raised concerns about his credibility and integrity.
Buyer’s case serves as a reminder that no one, regardless of their position or reputation, is above the law. Insider trading is a serious offense that damages the public’s confidence in the financial system. It is essential for authorities to vigorously investigate and prosecute such crimes to preserve the fairness and transparency of markets, as well as to demonstrate that those who engage in illegal activities will face the consequences.
As former Congressman Stephen Buyer begins his prison sentence, the public expects that justice has been served. The severity of his sentence sends a strong message that insider trading will not be tolerated, and individuals who abuse their positions for personal gain will be held accountable. The case also serves as a reminder to elected officials and public servants of the importance of maintaining the highest standards of ethics and integrity throughout their careers.
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