(WBBM NEWSRADIO) — The Securities and Exchange Commission (SEC) filed insider trading charges against former U.S. Congressman Stephen Buyer Monday.
Federal officials accused Buyer of using insider information to make over $300,000.
Buyer represented Indiana’s 4th Congressional District, which includes the areas north and west of Indianapolis, until 2011.
Authorities said Buyer got insider information from clients of the consulting firm he formed after leaving Congress.
Buyer was accused of meeting with a T-Mobile executive, learning of the company's plan to acquire Sprint, and then acting on that information to gain an immediate profit.
The feds alleged that Buyer bought stock in Sprint the day after he met with the T-Mobile executive, and they said he made over $100,000 after news of the merger went public nearly one month later.
SEC officials alleged that Buyer used insider trading again in 2019 and profited more than $227,000.
In a press release, Director of the SEC Enforcement Division Gurbir S. Grewal said: "When insiders like Buyer … 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."
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