Former Indiana Congressman Charged by SEC with Insider Trading

The Securities and Exchange Commission (SEC), on July 25, announced that it would pursue criminal charges for insider trading against former Rep. Steve Buyer (R-Ind.).

In a report announcing the charges, the SEC laid out its case against Buyer, alleging that he used his position in Congress to gain nonpublic access from T-Mobile about a then-unannounced merger with Sprint.

“After leaving Congress in 2011, Buyer formed a consulting firm, the Steve Buyer Group, which provided services to, among other clients, T-Mobile,” the report said. “In March 2018, Buyer attended a golf outing with a T-Mobile executive, from whom he learned about the company’s then-nonpublic plan to acquire Sprint.”

Buyer reportedly began to purchase shares in Sprint stock the next day, acquiring a total of $568,000 worth of shares. Following the official merger, Buyer received a profit of more than $107,000.

This is not the only charge Buyer is facing.

In 2019, the SEC report says, “Buyer purchased more than $1 million of Navigant Consulting, Inc., securities ahead of the public announcement that it would be acquired by another one of Buyer’s consulting clients, Guidehouse LLP.”

In both cases, he used the accounts of various friends and family to spread out the purchases and reduce suspicion on himself.

“When insiders like Buyer—an attorney, a former prosecutor, and a retired Congressman—monetize their access to material, nonpublic information, as alleged in this case, they not only violate the federal securities laws but also undermine public trust and confidence in the fairness of our markets,” said Gurbir S. Grewal, director of the SEC Enforcement Division. “We are committed to doing all we can to maintain and enhance public trust by leveling the playing field and holding Buyer accountable for illegally profiting from his access,” he added.

Buyer did not respond to a request for comment.

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