The Securities and Exchange Commission (SEC) is suing former GOP Representative Stephen Bayer, internal charges

(File 1988) Representative Stephen Bayer (R/IN) of the House Judiciary Committee carries his research materials away at the conclusion of impeachment proceedings on December 12.

Reuters

The Securities and Exchange Commission announced Monday that former Indiana Republican Representative Stephen Bayer is accused of insider trading using accounts owned by his wife and longtime lover to hide some transactions.

The buyer, who left Congress in 2011, is accused of trading non-public information he received as a consultant after he left office.

According to a civil complaint filed in Manhattan federal court, Buyer bought more than $1.5 million in stock in two separate companies, Sprint and Navigant Consulting, based on insider information over a two-year period.

He sold Sprint shares in 2018 after its merger with T-Mobile was leaked, for a profit of at least $107,000, according to the Securities and Exchange Commission. He sold Navigant shares in 2019 after news became public that Guidehouse LLP would acquire Navigant.

The buyer used several different accounts, including his wife Johnny Jupiter’s brokerage account, to purchase the shares. Jonny Byer is not accused of any wrongdoing, but she was named in the charges because she technically profited from illegal gains in her investment account.

The buyer allegedly posted stock purchases across 7 different accounts, including 2 separate IRA accounts owned by him alone, an investment account belonging to his wife Johnny Buyer; joint account owned by the spouses; Buyer of a joint joint account with his son; A buyer of a joint account he shared with his cousin, and a seventh account owned by a woman identified only as ‘Friend-1’.

According to the SEC complaint, Buyer began a romantic relationship with an unidentified woman in 2006. In 2018, Buyer used the woman’s IRA account to purchase more than $12,000 worth of stock in Sprint. A year later, he allegedly used her account again to purchase $22,000 of stock in Navigant, shortly before clients of Buyer Consultants took over the two companies.

“When insiders like Buyer — an attorney, former attorney general, and retired Congressman — divert their access to material non-public information, allegedly in this case, they are not only violating federal securities laws, but also undermining public confidence in Grewal, director of law enforcement. In the SEC, in the Securities and Exchange Commission press release “Fairness of Our Markets.”

A lawyer for the buyer was not immediately available for comment.

Jupiter served in Congress from 1993 to 2011, representing Indiana’s 4th congressional district, previously considered its fifth.

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