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July 26, 2022

Former Congressman Charged with Insider Trading

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The Securities and Exchange Commission (SEC) has filed insider trading charges against former Rep. Stephen Buyer (R-IN).

At a Monday press conference, the U.S. Attorney’s Office for the Southern District of New York announced the criminal charges against Buyer and eight others, including a former FBI agent trainee and an investment banker.

In the complaint, the SEC alleges that Buyer, a former U.S. representative for Indiana’s 4th Congressional District, made illegal stock purchases in at least two instances.

According to an SEC press release:

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 began purchasing Sprint securities the next day, and, ahead of the merger announcement, he acquired a total of $568,000 of Sprint common stock in his own personal accounts, a joint account with his cousin, and an acquaintance’s account. After news of the merger leaked in April 2018, Buyer saw an immediate profit of more than $107,000.

In 2019, according to the SEC’s complaint, 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. Buyer again spread the purchases across several accounts, including his own accounts, joint accounts with his wife and son, his wife’s personal account, and the same acquaintance’s account involved in the Sprint trading. The complaint alleges that, in August 2019, on the day that the Navigant acquisition was publicly announced, Buyer sold nearly all of the shares he had acquired across the various accounts and profited more than $227,000.

Gurbir S. Grewal, Director of the SEC Enforcement Division, said insider trading undermines the public’s trust in a fair market.

“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,” Grewal said.

“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.

13 comments on Former Congressman Charged with Insider Trading

  1. Bunny says:

    What about Paul Pelosi?

    1. Penelope says:

      She has a D after fer name…nothing will happen.

  2. Jeff says:

    Funny how Demorats never get charged. I’m sure most are doing this but none as blatant as the Pelosi family. Yes it’s her husband and not her account. His timing and returns would make Buffett blush. Funny how he buys things right before Congressional approval but nothing to see here folks.

    1. In government or their family should be allowed to buy ott sale stock within 10 years of their exit from public office says:

      You are 100% right. Noon

  3. steffan says:

    This “former” Congressman makes $100k and is charged, but the Pelosi Dynasty makes $300 Million, and old bag Nancy won’t answer questions at all, and blocks efforts to prevent this practice in the future???
    Give me a break! DOUBLE STANDARD REMAINS!

  4. To tears system of Justice you’re getting a first hand schooling. Democrats are demons they deserve not even to walk this Earth. All 3 letter agencies are doomed for destruction because of their own stupidity.

  5. Helen Sanders says:

    This former Congressman is a Republican. Is that the reason he is being charged? You need to go after Pelosi immediately for the same reason. Paul and Nancy both need to be charged with insider trading, because that is how they got that big profit from the information she gave her husband.

  6. Dianne R says:

    What about Nancy Pelosi and DUI husband?? Two tiers of justice in the USA.

  7. Fred says:

    Hmm. This former Republican congressman ILLEGALLY made a tiny pittance compared to sitting members of congress, like Pelosi, who have also ILLEGALLY “made” millions… So yeah, he should have to forfeit the money and get an appropriate punishment compared to Pelosi and all the other corrupt politicians who have stolen a thousands of times more. So, let’s say Former Rep. Buyer gives back the ~107K and spends 1 month in jail. Then Pelosi should give back millions and spend the rest of her life in jail. Do you think the SEC will go after *any* Democrat or Uni-party RINO while in office? The SEC is weaponized and no different than any other federal 3-letter agency. As a side bet, what do you think will happen to Pelosi’s husband’s DUI?

  8. Don says:

    So they find an R to charge but never a Demonrat that we KNOW, probably most, who are doing it.

  9. Richard Izzo says:

    Which of the 3 curtains is the big prize behind? Oops your zonked.

  10. kurt gandenberger says:

    all of congress gets rich with insider trading as they have exempted themselves from the law. a former republican is charged. very fishy.

  11. Larry Sears says:

    I just wonder when they will charge Pelosi for the same offense after her alcoholic husband bought millions of dollars of stock based on info obtained by worthless Nance. Not holding my breath on that!!!!

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