Former congressman charged with insider trading

[Hydrogen]

The Securities and Exchange Commission (SEC) on Monday charged former Rep. Stephen Buyer (R-Ind.) with insider trading, including purchasing stocks based on nonpublic information.

The SEC filed the insider trading charge in a Manhattan federal district court, accusing Buyer of making illegal stock purchases in at least two instances, according to an agency press release. The SEC is seeking to force Buyer to disgorge profits he made from the alleged schemes.

The charges were brought as part of an investigation into Buyer and nine other defendants, who were also charged on Monday with insider trading schemes.

The U.S. Attorney’s Office for the Southern District of New York on Monday filed criminal charges in a parallel case against nine defendants, including Buyer.

SEC Enforcement Division Director Gurbir Grewal said those who monetize nonpublic information not only violate federal law but “undermine public trust and confidence in the fairness of our markets.”

“We are committed to doing all we can to maintain and enhance public trust by leveling the playing field and holding Buyer accountable for illegally profiting from his access,” Grewal said in a statement.

Buyer, who served in Congress from 1993 to 2011, founded his own consulting group called the Steve Buyer Group shortly after leaving public office.

The former congressman is accused of acquiring $568,000 in Sprint shares after he learned through nonpublic channels in March 2018 that T-Mobile was planning to merge with the then-rival telecommunications company. T-Mobile was a client of Steve Buyer Group.

Buyer immediately pocketed more than $107,000 via the stock exchange after news of the merger leaked in April 2018, the SEC said.

In another instance, the SEC says Buyer purchased more than $1 million in shares in Navigant Consulting ahead of an announcement that one of his clients, Guidehouse LLP, would purchase the firm.

He allegedly spread purchases of the shares across several accounts, including ones belonging to his wife and son.

Buyer then sold his shares for a $227,000 profit the day the Guidehouse-Navigent merger was announced, the SEC charges.


At a press conference on Monday, the U.S. Attorney’s Office in New York’s Southern District announced the criminal charges filed against Buyer and eight other defendants, including a former FBI agent trainee and an investment banker, were part of broad effort to crack down on financial fraud.

At the press conference, U.S. Attorney Damian Williams said he assumed office last year to “be relentless in rooting out corruption in our financial markets.”

“Nearly one year later, those priorities have not changed one bit,” Williams said.


https://thehill.com/regulation/court-battles/3572973-former-congressman-charged-with-insider-trading/

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Are they finally giving the people what they asked for by filing insider trading lawsuits against politicians, FBI agents and investment bankers?

The timing of this move is interesting. The suit being filed in new york is interesting as well. Looking at specifics of the case, there are other interesting trends which emerge.

The general indication I get from reading forums and social media is the public approves of insider trading crackdowns on the political sector. They support closing loopholes which allow for politicians to receive lobbyist funds from corporations and the private sector legally.

On a superficial level, does anyone see similarities between the gamestop lawsuit on retail traders and this recent move to crackdown on insider trading from politicians?

[The Sceptical Chymist]

On a superficial level, does anyone see similarities between the gamestop lawsuit on retail traders and this recent move to crackdown on insider trading from politicians?

I'm sort of familiar with what happened with Gamestop stock and the Wallstreetbets crowd on Reddit--is that the incident that involved Robinhood sort of what you're referring to, or is it something else?  If so, I don't see any connection.  I did think the hedge funds and everyone else whining about a bunch of small retail traders trying to manipulate that stock was laughable.  Weren't there more shares out short than should have actually been available?  That was very bizarre.

As to our congresscammer here, I'm glad he got busted but honestly if the only punishment he gets is having to give back the profits he made from the insider trading, he's getting off too lightly.  Even if he isn't in congress anymore, any elected official that high up should be held to an extremely high standard.  On the other hand, the profit he made from the Sprint trade seemed to be kind of small (relatively speaking).  It wasn't even $1 million that he made, so I wouldn't expect him to spend years in jail--even though I wouldn't complain.

This sort of thing isn't uncommon in my eyes.  A former governor of my state went to prison for doing something shady with public resources, and in the early 2000s guys from Enron went to prison, as did the CEO of Worldcomm.  I'm pretty sure those enforcement agencies love big busts, and they get them no matter how influential someone is (sometimes, anyway).

[cabron]

On a superficial level, does anyone see similarities between the gamestop lawsuit on retail traders and this recent move to crackdown on insider trading from politicians?

I'm sort of familiar with what happened with Gamestop stock and the Wallstreetbets crowd on Reddit--is that the incident that involved Robinhood sort of what you're referring to, or is it something else?  If so, I don't see any connection.  I did think the hedge funds and everyone else whining about a bunch of small retail traders trying to manipulate that stock was laughable.  Weren't there more shares out short than should have actually been available?  That was very bizarre.

As to our congresscammer here, I'm glad he got busted but honestly if the only punishment he gets is having to give back the profits he made from the insider trading, he's getting off too lightly.  Even if he isn't in congress anymore, any elected official that high up should be held to an extremely high standard.  On the other hand, the profit he made from the Sprint trade seemed to be kind of small (relatively speaking).  It wasn't even $1 million that he made, so I wouldn't expect him to spend years in jail--even though I wouldn't complain.

This sort of thing isn't uncommon in my eyes.  A former governor of my state went to prison for doing something shady with public resources, and in the early 2000s guys from Enron went to prison, as did the CEO of Worldcomm.  I'm pretty sure those enforcement agencies love big busts, and they get them no matter how influential someone is (sometimes, anyway).

Not even a tap on the wrist.  Returning the profit is way too light.

Offense like this will come often just when Paul Pelosi the husband of famous speaker Nancyy Pelosi who bought Nvida stocks just as she has inside information. She knew very well there is a Chips Act discussion and they made profit. This isnt the first time she did this.

[fiulpro]

All I do understand is that the GameStop stock, brought the shares at a much higher price and then crashed the market knowingly, which then ended up putting the price lower and then they again brought it at a much better price, it's sad to see how rich people can manipulate the market, it's more like a matter of demand and supply to be honest but doing this should certainly be illegal but I still don't see Elon Musk being held accountable, he did the same thing on twitter.

When he returns the profit, where will it go ?
To the government ofcourse
Thus I do think this punishment is not just letting him off the hook but it's also making them earn loads of money indirectly. The person didn't even use his account he also spread it over to his wife and son which is honestly appalling since he collectively brought people down as well, just extends to show how the Rich gets unfair treatment.

[stompix]

Are they finally giving the people what they asked for by filing insider trading lawsuits against politicians, FBI agents and investment bankers?
The timing of this move is interesting. The suit being filed in new york is interesting as well.

There is no "timing".
Chris Collins was also a congressman from NY and was convicted in 2020 for something happening in 2017, if it weren't for Trump's pardon he would still be in jail. Duncan D. Hunter was also convicted in 2020, again...Trump...
Jeff Fortenberry was just sent to prison for lying to the FBI about campaign funds, you could take any of those stories and try to make something out of it but there isn't any conspiracy behind this, they all just happen now and then, and if you don't look int he past you might think this is an extraordinary event when it's actually not.

All I do understand is that the GameStop stock, brought the shares at a much higher price and then crashed the market knowingly, which then ended up putting the price lower and then they again brought it at a much better price,

Where did you get the idea that this is about GameStop and that buy low / sell high thing?
Nothing like hat happened in this case!

[cabron]

Its not new in stock market but politicians seem to get away with such. Not in crypto though.

SEC had been extending its hand to crypto space because last week also A related to the case involving Coinbase product manager who has inside information to  the listing of coins which Ishan Wahi, a former Coinbase manager and his brother were accused by SEC and the department of justice. Wahi was arrested in the airport who plans to travel to India with one way ticket.

https://www.reuters.com/technology/us-charges-former-coinbase-product-manager-over-insider-trading-scheme-2022-07-21/

Its an easy money for them as they have the future knowledge of listing. Same with the NFT market, if the project will featured on Opensea and they get this info ahead of time.

[NotATether]

Not even a tap on the wrist.  Returning the profit is way too light.

Offense like this will come often just when Paul Pelosi the husband of famous speaker Nancyy Pelosi who bought Nvida stocks just as she has inside information. She knew very well there is a Chips Act discussion and they made profit. This isnt the first time she did this.

See, I was right when I said that insider trading isn't going away anytime soon. Already after the Coinbase case, more and more people are getting busted. It's like the SEC is playing whack-a-mole with financial thieves.

[stomachgrowls]

Its not new in stock market but politicians seem to get away with such. Not in crypto though.

SEC had been extending its hand to crypto space because last week also A related to the case involving Coinbase product manager who has inside information to  the listing of coins which Ishan Wahi, a former Coinbase manager and his brother were accused by SEC and the department of justice. Wahi was arrested in the airport who plans to travel to India with one way ticket.

https://www.reuters.com/technology/us-charges-former-coinbase-product-manager-over-insider-trading-scheme-2022-07-21/

Its an easy money for them as they have the future knowledge of listing. Same with the NFT market, if the project will featured on Opensea and they get this info ahead of time.

Thats why we cant really assure about those "fair" or even lets say about equality on which there are people who are really that loved on tolerating manipulatable acts and making huge money out of it

but of course governing bodies wont really be that dumb on not to notice out.It might be that rampant on typical or casual markets that we've known and now its been applied on crypto
which i dont doubt because tracing up would really be pain in the ass but doesnt mean its impossible.

People/company involved deserve these kind of consequences which it is really right to have these charges and everything.

[TheNineClub]

So politicians being politicians, right? I wouldn't really call one or two persons being slapped on the wrist a crackdown, because I can assure you it's not just one or two doing it. Is see this more of a sacraficial lamb than a sytemic crackdown.