US Securities and Exchange Commission accused former Republican lawmaker Steve Buyer of insider trading on July 25, 2022. (SEC). The founder of the consulting business Steve Buyer Group was the target of one of law enforcement’s most aggressive insider trading investigations. According to the SEC, T-Mobile was a customer of the organization, and during a March 2018 golf session with one of the T-executives, Mobile’s Buyer obtained information that assisted him in participating in insider trading prior to the merger between T-Mobile and Sprint.
The US Securities and Exchange Commission announced in a news release:
“Buyer started acquiring Sprint equities the next day, and prior to the merger announcement, he bought a total of $568,000 worth of Sprint common stock in his own accounts, a joint account with his cousin, and a friend’s account. In April 2018, when word of the transaction broke, Buyer realized an instant profit of more than $107,000.”
On Monday in New York City, nine individuals were charged with insider trading schemes, including a former Indiana congressman. According to the SEC, Steve Buyer made further investments in Navigant Consulting, Inc. prior to its merger with Guidehouse LLP, another of his consulting clients. These investments totaled one million dollars.
“According to the lawsuit, on the day the Navigant purchase was disclosed publicly in August 2019, Buyer sold virtually all of the shares he had bought across his multiple accounts and made more than $227,000 in profit.”
Steve Buyer is the most recent target of the SEC’s current efforts to prevent insider trading
Multiple allegations of insider trading were brought against the former representative of Indiana’s fourth congressional district, who served as a Republican from 1993 until 2011. The SEC said that he abused “confidential information” to generate enormous profits. Director of the SEC Enforcement Division Gurbir S. Grewal said in the news release:
“When insiders like Buyer – a lawyer, a former prosecutor, and a retired congressman — monetize their access to substantial, nonpublic information, as claimed in this instance, they not only violate federal securities laws but also erode public faith and confidence in the integrity of our markets.”
On Monday, the Manhattan federal district court accused Buyer of violating both Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC has vowed to “keep and strengthen public confidence” by holding public officeholders responsible for their unauthorized use of private information obtained via their position.