In Inside Trading Trial of Ex-Eep Buyer US Says He Papered His Trades So Game Over

Friday there will be the jury charge, then deliberations. Inner City Press is on the case

By Matthew Russell Lee, Light Read, Patreon

SDNY COURTHOUSE, March 9 -- On July 25, 2022 the SDNY prosecutors unsealed an indictment of ex Rep Stephen Buyer for illegal trading on two mergers.

On July 27, Buyer accompanied by his wife was in Courtroom 17B of 500 Pearl Street to be arraigned. Inner City Press live tweeted it here.

On March 1, 2023, the trial began with opening arguments. Inner City Press live tweeted here.

On March 2, T-Mobile executive (and plus 2 hadicap amateur golfer, he pointed out) Anthony Russo was on the stand. On direct examination he said Buyer trading stock would have been inappropriate under T-Mobile's insider trading rules.

With the jury out of the room, Buyer's lawyer asked for a mistrial. Judge Berman asked for briefing, saying he didn't want to prejudge. He pointed out at the indictment does speak of stock sales, and not only purchases. Buyer's lawyer insisted on the dates of crime listed in the indictment. Inner City Press will cover the filings - for now, thread here

On the morning of March 6, the prosecution called witnesses including Matthew Levine of Virtu Financial, who said along with servers in New Jersey they traded through Manhattan offices (for venue), and Karen Hensel, a journalist in Indiana, Boston and now Florida.

  She said after a friendship then intimate relationship with Buyer he opened a Charles Schwab account in her name and traded Sprint and Navigant stock in it, for her.

On cross examination, the fourth of Buyer's five lawyer asked her to confirm that Steve helps his friends. She did.

More on Substack here.

On March 7, Buyer's lawyers put on the witness stand a series of character witnesses. One had flown in from Indiana the night before; another had traveled to Bosnia with Buyer. Each was asked, since a Congressmember gets to use the prefix "Honorable," if they thought Steve Buyer was - and said yes.

  Former Buffalo Congressman Jack Quinn was allowed to testify by video from Florida (he said he has Parkinsons Disease). With a ceiling fan behind him, he too agreed Buyer is honorable. Will it be enough?

On March 8, Buyer was on the stand, and Inner City Press was there. Thread here:

OK- now in insider trading trial of ex-Rep from Indiana Stephen Buyer - defendant is on the stand

Buyer: When Tony Russo told me about a dark project, I thought he meant NSA and CIA, Sprint had those contracts...

Alonso: Did you tell Tony Russo you'd bought Sprint stock? Buyer: No. I regret it because now I suffer innuendo

Buyer: Tony told me I was to tell VP Pence two hours before the merger. He's from Indiana too.  [Henry Waxman also on list for #TMobile lobbyists meeting]

 Buyer: I traveled to Augusta to consider joining a golf club, Champions Retreat. My cousin wanted to play Augusta National. [Cousin Cal's text about 9 1-putts shown; Buyer replied "I bought Sprint"]

 Exhibits show T-Mobile telling John Sununu, and Manus Cooney for antitrust. They met at DLA Piper.  [Jurors are taking a lot of notes]

More on Substack here.

On March 9, cross and closings, culminating in the rebuttal summation, thread here:

AUSA: Tony Rosso canceled the golf at Doral to be on merger calls. Does it make any sense he would not tell Steve Buyer why he canceled? No. 

[Buyer is shaking his head]

AUSA: Here is Steve Buyer's stock watch list

[Roku, Zendesk, Square- but no Sprint or Navigant].

The notes on the Zacks print-out is him papering the trades. He's smart but you're smarter.

 AUSA: On venue, the NYSE is in SDNY. Game over.

[Buyer shakes his head, whispers to his lawyer.]

AUSA: Ms Hensel is relevant because Mr Buyer called 8 character witnesses. But he lies. He committed thos crime. Thank you.

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