Former Republican Congressman Stephen Buyer has been sentenced to nearly two years in prison for insider trading. Buyer, who served nine terms in Congress, was convicted for using inside information he gained as a corporate consultant for personal financial gain. On Tuesday, he was sentenced to 22 months in prison by U.S. Attorney Damian Williams in the Southern District of New York.
Buyer’s illicit activities took place after he left office in 2011 and began working as a consultant. He was convicted in March on four counts of misappropriating non-public information for his former consulting clients. In July 2022, the Securities and Exchange Commission (SEC) charged Buyer and nine others with insider trading.
The SEC alleged that Buyer used information he obtained as a consultant to make profitable securities trades. One example cited was his purchase of $568,000 worth of Sprint shares in 2018 after learning about the planned merger between Sprint and T-Mobile. T-Mobile was a client of Buyer’s consulting firm, the Steve Buyer Group.
During the trial, evidence was presented showing that Buyer also engaged in insider trading involving Navigant Consulting group. He made over $223,000 from illegal trades related to the organization’s acquisition by Guidehouse in 2019.
When Buyer testified in March 2023, he provided false explanations for his trades. U.S. District Judge Richard M. Berman ruled that Buyer’s statements amounted to obstruction of justice.
In addition to the prison sentence, Buyer was ordered to pay over $350,000 in forfeiture and restitution. U.S. Attorney Damian Williams emphasized that no one, including a former congressman, is above the law, and that those who undermine the fairness and integrity of the markets will be brought to justice.
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