Stephen Buyer, a former Indiana congressman, has been sentenced to 22 months in prison for his involvement in two separate insider trading schemes from his time involving T-Mobile’s merger with Sprint, according to the U.S. Attorney’s Office for the Southern District of New York.
The sentencing, handed down by U.S. District Judge Richard M. Berman, follows Mr. Buyer’s conviction on four counts of securities fraud.
At his trial in March, Mr. Buyer provided false explanations for his involvement in insider trading schemes, which were deemed to constitute obstruction of justice by Judge Berman. Despite his conviction, he has expressed his intention to file an appeal against the sentence, reported Reuters.
Mr. Buyer served as a Republican member of Congress representing Indiana in the House from 1993 to 2011, after which he transitioned to a career as a corporate consultant.
Prosecutors detailed how Mr. Buyer engaged in insider trading on two separate occasions, reaping substantial profits exceeding $300,000.
In 2018, while working as a consultant for T-Mobile during March and April, Mr. Buyer received insider information regarding the company’s plans to acquire Sprint, according to prosecutors. The merger was valued at $26.5 billion. Before this information was made public, Mr. Buyer allegedly purchased over $500,000 in shares of Sprint stock.
“Buyer breached his duty of confidentiality to T-Mobile and misappropriated that information by purchasing shares of Sprint across several brokerage accounts, including his own accounts, an account held jointly with his cousin, and an account in the name of a close, personal friend,” stated the U.S. Attorney’s Office for the Southern District of New York.
He ultimately made over $126,000 in profits after the merger was publicly disclosed, according to prosecutors.
The following year, in 2019, while providing consulting services for the firm Guidehouse between June and August, Mr. Buyer purportedly learned about Guidehouse’s intentions to acquire the consulting firm Navigant. In response, he invested over $1 million in Navigant stock.
“Buyer purchased Navigant shares across several brokerage accounts, including accounts in his own name, joint accounts held with family members, and the account of the same close, personal friend whose account he used to trade Sprint shares,” stated the U.S. Attorney’s Office for the Southern District of New York.
He subsequently profited by more than $223,000 from his Navigant trades, according to prosecutors.
In addition to his prison sentence, Mr. Buyer has been ordered to pay over $350,000 in forfeiture and restitution.
