Stephen Buyer, a former Republican representative from Indiana, faced conviction for trading stocks related to insider information before the deals were publicly announced. In a significant move, President Trump pardoned Buyer, a decision supported by influential Republican figures such as Senators Roger Wicker and Lindsey Graham, along with former House Speaker John Boehner. The official pardon was dated June 4.
Buyer’s conviction in 2023 resulted in a 22-month prison sentence after he was found guilty on four counts of securities fraud. The charges originated from allegations that Buyer traded on insider information about two mergers obtained through his consultancy firm, which he established after leaving Congress in 2011.
Since his return to the White House, Trump has actively issued pardons and commutations. This trend includes numerous pardons for individuals accused of white-collar crimes, fostering a niche for operatives focused on securing clemency requests.
In his pardon statement, Trump highlighted Buyer’s distinguished service as a Judge Advocate General in the United States Army and his productivity as an Indiana Congressman.
The complaint from the S.E.C. detailed how Buyer acquired insider information from T-Mobile regarding its acquisition of Sprint, leading him to purchase $568,000 in Sprint securities. These stocks appreciated by over $107,000 after the merger’s public announcement. In another transaction in 2019, Buyer obtained information from Guidehouse about its acquisition of Navigant, prompting him to buy over $1 million of Navigant stock. This trade netted him a profit exceeding $227,000 following the merger news.
Andrew Goldstein, Buyer’s attorney, did not provide immediate comments late Friday. Previously, in 2022, Goldstein maintained Buyer’s innocence concerning the charges
Buyer, now 67, was initially elected as a Representative in 1992 and retired in 2010, citing the need to care for his wife, Joni Lynn Buyer, who suffers from an autoimmune disorder.
The S.E.C. advocated for the U.S. District Court for the Southern District of New York to mandate Buyer and his wife to return the profits with interest and prohibit Buyer from holding executive positions in any company.
This situation underscores ongoing concerns among lawmakers, both Republicans and Democrats, regarding insider trading. Lawmakers possess unique access to classified information, business leaders, and economic policy settings, leading to proposals for restricting stock-related activities by legislators and their families.