President Trump has controversially pardoned Stephen Buyer, a former congressman from Indiana convicted of insider trading in 2023. This is part of a pattern where well-connected and wealthy individuals have received pardons after reportedly contributing significant amounts to Trump’s re-election or related events.
Such actions have led to concerns that the president’s associates and donors enjoy immunity from legal repercussions. Though the president’s power to pardon is discretionary, states have an avenue to ensure accountability: prosecuting individuals who were wrongfully pardoned if they violate state laws.
State Sovereignty in Legal Prosecutions
States, as independent entities, can bring cases that the federal government chooses to drop, provided the conduct breaches state laws. Federal pardons do not influence these state-led prosecutions.
The Case of Joseph Schwartz
Joseph Schwartz’s situation serves as an example. In 2024, he admitted to federal tax crimes linked to a fraudulent nursing home operation and subsequently received a pardon from Trump. However, Schwartz had state convictions for Medicaid fraud and tax evasion in Arkansas. Consequently, the Arkansas attorney general, Tim Griffin, pursued state-level penalties, enforcing prison time and imposing over $1 million in restitution and fines. Schwartz’s actions caused harm in multiple states, where accountability could be further exacted.
Trevor Milton’s Case
Trevor Milton was found guilty of misleading investors in Nikola, an electric truck company, in 2022. Trump pardoned him in 2025. Given that Nikola’s base was Arizona, the state, with cooperation from others, could charge Milton under state law for fraud.
States acting against pardoned individuals underscore the importance of local authority in upholding justice when federal actions fall short.

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