The Securities and Exchange Commission announced Monday that a former Indiana Republican congressman has been charged with trading on inside information.
The former congressman is accused of trading on non-public information he received after leaving office.
According to the civil complaint filed in Manhattan federal court, buyer bought more than 1.5 million shares of stock in two companies based on information he received over the course of two years
According to the SEC, he made at least $107,000 by selling his shares in sprint after its merger with T-Mobile leaked. He sold his shares in the company after learning of the acquisition.
The buyer used several different accounts to purchase the shares. She is named in the charges because she technically benefited from the ill-gotten gains she made in her investment account.
The stock purchases were spread across 7 different accounts, including two separate IRA's belonging to him alone, an investment account belonging to his wife, a joint account with his son, and a joint account with his cousin.
The SEC complaint states that Buyer started a romantic relationship with a woman. The buyer used the woman's IRA account to purchase a lot of stock in the company. He used her account a second time a year later to purchase $22,000 of stock in the company.
Insiders like Buyer, an attorney, a former prosecutor, and a retired congressman, who monetize their access to material, nonpublic information, not only violate the federal securities laws, but also undermine public trust and confidence in the fairness of our markets, according to Gur.
The lawyer for Buyer was not available for comment.
The 4th congressional district in Indiana was represented by Buyer from 1993 to 2011.
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