Who is Steve Buyer? Former Indiana congressman charged with alleged insider trading

On Monday, July 25, 2022, former Republican representative Steve Buyer was charged with insider trading by the US Securities and Exchange Commission (SEC). In what was one of the most stringent attacks on insider trading by law enforcement, officers doubled down on the founder of consulting firm, Steve Buyer Group.

According to the SEC, T-Mobile was a client of the group and during a golf session in with one of T-Mobile's executives in March 2018, Buyer learned information that aided him in engaging in insider trading before T-Mobile's merger with Sprint.

In a press release, the US Securities and Exchange Commission stated:

"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."

The ex-Indiana congressman was among the nine people charged with insider trading schemes on Monday, in New York City.

According to the SEC, Steve Buyer further invested in Navigant Consulting, Inc. prior to its merger with another of Buyer's consulting clients, Guidehouse LLP. These investments added up to $1 million.

"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. "

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Steve Buyer is the latest target of the SEC's recent enthusiastic attempts at stopping insider trading

The former Republican congressman, who was a representative for Indiana's fourth Congressional District from 1993 to 2011, was charged with multiple counts of insider trading. The SEC claimed that he misused "nonpublic information" to reap huge profits.

Gurbir S. Grewal, the Director of the SEC Enforcement Division, further said in the press release:

"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."

On Monday, the federal district court in Manhattan charged Buyer with violating both Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

The SEC has resolved to "maintain and enhance public trust" by holding public office holders accountable for their illegal use of private information that their position offered them.