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New York prosecutors have filed charges against former Indiana lawmaker Stephen Buyer, the head of a technology company who profited illegally by selling and buying stock on the stock market, based on confidential information that are not intended for public consumption.
Likewise, in two separate cases, charges were brought against a person who was preparing to be an FBI agent, as well as an investment banker. Those cases are among the indictments filed against nine people in New York City involved in four separate insider trading schemes that were made public today.
This is considered one of the most significant actions by law enforcement against this phenomenon in a decade. Prosecutor Damian Williams and other federal officials vowed to step up efforts for similar prosecutions in the future. They said that the accused have illegally profited millions of dollars.
In a press conference, Prosecutor Williams said that the cases are a continuation of his promise to be “determined to root out criminal activities in the (American) financial markets.”
The indictment against Stephen Buyer alleged that he appropriated the secrets he had learned as a consultant to illegally earn about $350,000. The Republican lawmaker served on the commission that oversees the telecommunications industry from 1993 to 2011.
Mr. Buyer, who was arrested Monday in Indiana, is accused of using classified information to buy stock during a merger process between phone companies T-Mobile and Sprint, among others. The documents say he used his work as a consultant and lobbyist for illegal gains.
His attorney did not immediately respond to an email message for comment on the case.
In a civil suit filed by the Federal Securities Commission in Manhattan against Mr. Buyer, it was alleged that he bought Sprint stock in March 2018, just one day after attending a golf game with a T-Company executive. Mobile, who spoke to the former lawmaker about the state of the company and its non-public plans to buy Sprint.
Mr Grewal said the arrests were not only intended to send a signal to financial industry professionals to protect secrets and enforce the law, but were also intended to send an equally strong message to the public” that regulatory bodies and structures of law enforcement, are focused on keeping the markets clean.
In a second lawsuit, three executives of a Silicon Valley technology company are accused of illegally using inside information related to a corporate merger case, information that one of them learned from his employer.
In a third case, a man preparing to become an FBI agent allegedly stole inside information from his ex-girlfriend, who at the time worked at a major Washington law firm. According to court documents, he and a friend illegally obtained more than $1.4 million after learning that Merck & Co. was going to buy Pandion Therapeutics.
In the fourth indictment, it was alleged that a New York-based investment banker shared confidential information with another person about possible company mergers, agreeing to share illegal benefits worth about $280,000./VOA
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