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A US court ordered a former Republican congressman from Indiana to spend 22 months in prison for trading on inside information. In March, US District Judge Richard Berman in New York found Stephen Buyer guilty and sentenced him.
The politician, who served in Congress from 1993 to 2011, traded using information he had on mergers while working as a consultant after leaving office.
Insider Trading Conviction
On September 19, the court handed down the sentence. According to reports, they ordered the buyer to report to prison on November 28.
He was found guilty of making nearly $350,000 in insider trading. He had prior knowledge ahead of T-Mobile US Inc.’s 2018 announcement of plans to acquire Sprint Corp in a $26.5 billion merger. Prosecutors said Buyer bought tens of thousands of shares after a T-Mobile executive told him about the merger on a Miami golf weekend.
Buyer also traded on Guidehouse Inc.’s 2019 acquisition of Navigant Consulting Inc.
After the March verdict, attorney Damian Williams said that Buyer:
“Leveraged his position as a corporate advisor to twice use his clients’ material nonpublic information to commit insider trading.”
However, Buyer declared his intention to appeal and told the judge that his life was characterized by “good acts.”
The politician served on the House Subcommittee on Communications and Technology, which oversees the US telecoms industry. After leaving Congress in 2011, he formed a consulting firm advising companies in the sector.
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The heavy sentencing has put the spotlight back on other potential insider trading misdemeanors. Even Elon Musk has been sued over his Dogecoin shilling.
High-profile figures, such as US Speaker of the House of Representatives Nancy Pelosi, may implicate themselves. In June, Nancy Pelosi’s husband exercised roughly $2.6 million worth of Apple and Microsoft stock options.
Paul Pelosi has faced backlash over his stock trades that seem to coincide with legislation in the technology sector. Additionally, Nancy has repeatedly stated that her husband’s trades have nothing to do with her political knowledge.
In July 2022, Paul Pelosi sold millions worth of stock Nvidia. This was a day before the Senate passed a multibillion-dollar bill aimed in part at boosting US chip manufacturing.
Delving Deeper into Policician’s Investments
On September 15, internet culture outlet the Daily Dot questioned Nancy Pelosi’s stock trading habits. The pair have accrued millions of dollars in real estate and other investments, casting light on their stock holdings.
“The American public has long suspected that members of Congress use their power and knowledge to give them an edge in the stock market.”
There are even Nancy Pelosi stock-tracking X (Twitter) accounts that have the goal of “getting them banned from trading.”
Furthermore, reports from September 14 estimate that her entire portfolio has increased by around 30% this year. They also added that “Other politicians have seen even larger increases.”