Ex-Congressman Stephen Buyer Sentenced to 22 Months for Insider Trading

　　On Tuesday, former Congressman Stephen Buyer was sentenced to 22 months in prison for insider trading. This case involved confidential information he obtained as a consultant to private companies, including T-Mobile.

　　A History of Insider Trading

　　In the previous year, Buyer was indicted for allegedly using privileged information to purchase $1.5 million in stocks. In March, he was convicted of four counts of securities fraud for engaging in two separate insider trading schemes.

　　Buyer's Involvement in the T-Mobile-Sprint Merger

　　As a consultant to T-Mobile, Buyer gained access to confidential information regarding the company's multibillion-dollar merger with Sprint Corporation, prior to the public announcement. In March and April 2018, Buyer purchased shares of Sprint. Shortly after, it was revealed that T-Mobile had agreed to acquire Sprint in a $26.5 billion deal, causing the share prices of both companies to surge.

　　Evidence of Insider Trading

　　Evidence gathered during Buyer's trial revealed that T-Mobile executives shared confidential information about the merger with a select group of trusted consultants, including Buyer, instructing them to maintain secrecy. As a result of this inside information, Buyer made over $126,000 from buying and selling Sprint stock.

　　Another Insider Trading Scheme

　　A year later, Buyer engaged in another insider trading scheme involving shares of Navigant Consulting, ahead of its acquisition by Guidehouse. Buyer was a consultant for Guidehouse and learned about the intended acquisition through his connection with the company. He purchased shares of Navigant before the official announcement and sold them at a profit following the public disclosure.

　　Buyer's Testimony Deemed False

　　During Buyer's trial in March, U.S. District Judge Richard M. Berman deemed Buyer's testimony to include false explanations for his trading of Sprint and Navigant shares, constituting an obstruction of justice.

　　Judge Berman's Sentencing Remarks

　　While sentencing Buyer in a New York court, Judge Berman emphasized that Buyer had abused positions of trust for personal gain. He stated that no insider trader is above the law and that those who undermine the fairness and integrity of the markets will be brought to justice.

　　Representatives' Response

　　When contacted by Fortune, representatives for Buyer were unavailable for immediate comment.

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