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EX US Congressman, Stephen Buyer, has been sentenced to 22 months in prison for insider trading. He was found guilty on four counts of securities fraud after trading on non-public information acquired during his consultancy with T-Mobile US (NASDAQ: TMUS). The information pertained to T-Mobile’s $23 billion merger with Sprint.
Background on Buyer
Buyer, a Republican from Indiana, served in the U.S. House of Representatives from 1993 to 2011 before transitioning to a corporate consultant role. Prosecutors revealed that Buyer purchased Sprint stock after gaining knowledge of the merger talks in 2018 through a T-Mobile executive. Subsequently, he engaged in unlawful trading activities in the following year.
Profits from Unlawful Activities
According to prosecutors, Buyer made over $100,000 from the Sprint trades and an additional $200,000 from stock purchases in Navigant Consulting Inc. before its acquisition by Guidehouse in 2019.
During the trial, Buyer claimed innocence, denying any wrongdoing based on insider information. He intends to file an appeal in response to the sentencing.
Prosecutors’ Stance On EX US Congressman
Prosecutors had sought a three-year prison sentence for Buyer, asserting that he had betrayed his clients’ trust and lied under oath. Buyer had requested home confinement as an alternative to imprisonment, citing his prior service in Congress and the U.S. military.
The case is officially documented as U.S. v. Buyer, No. 22-00397, in the U.S. District Court, Southern District of New York.
Disclaimer: Please note that this article serves solely for informational purposes and should not be construed as financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
