WASHINGTON: A former US congressman, an FBI agent and seven other individuals have been charged with insider trading that generated millions of dollars in profits, US Attorney for the Southern District of New York Damian Williams said on Monday, reported Sputnik.
“I’m here today to announce the unsealing of four separate indictments, charging a total of nine defendants with insider trading schemes that collectively generated millions of dollars in profits. The defendants arrested today include a former United States congressman, an FBI agent in training, multiple Silicon Valley executives, and an investment banker who worked at one of Wall Street’s leading financial institutions,“ Williams said during a press conference.
One of the defendants is former US congressman Stephen Buyer, who is charged with allegedly using his job as a business consultant to obtain information about corporate mergers involving his clients, Williams said.
Buyer then used the obtained information to trade and to profit in his own account and in other people’s accounts, Williams added.
The criminal action against Buyer has been taken in parallel with the Securities and Exchange Commission (SEC).
The SEC said in a press release that it filed a complaint alleging Buyer used inside information to buy US$1.5 million in stocks, including from the telecommunication company Sprint ahead of its merger with T-Mobile.
In March 2018, Buyer purchased a total of US$568,000 of Sprint stocks and made a profit of more than US$107,000 after news of the merger leaked in April 2018, the release also said.
The SEC alleges that Buyer earned more than US$227,000 after he purchased and then sold more than US$1 million of Navigant Consulting, Inc. securities, the release added. – Bernama