State Prosecutions as a Check on Federal Pardons

President Trump recently issued a controversial pardon to Stephen Buyer, a former congressman from Indiana convicted of insider trading in 2023. This pardon adds to a growing list of wealthy and well-connected individuals who have received clemency from Mr. Trump. Reports suggest that some of these pardons followed substantial financial support for Mr. Trump’s re-election efforts or payments to politically connected figures.

The perception that the president’s allies are above the law has intensified concerns over the discretionary nature of the presidential pardon power. Despite this, there is a viable solution that involves collective state action to ensure accountability. States possess the authority to prosecute individuals who face pardons at the federal level when their actions violate state laws. State-level prosecutions remain unaffected by federal pardons.

The case of Joseph Schwartz serves as an illustrative example. In 2024, Schwartz pleaded guilty to federal tax crimes connected to a fraudulent nursing home business. After receiving a pardon from Mr. Trump, Schwartz continued to face consequences at the state level. Convicted in Arkansas for Medicaid fraud and tax evasion, he served time in state prison and paid over $1 million in restitution and fees.

Schwartz’s fraudulent activities impacted multiple states, reinforcing the need for comprehensive accountability across jurisdictions.

Another case is that of Trevor Milton, convicted in 2022 for defrauding investors in the electric truck company Nikola. Despite receiving a pardon in 2025, state authorities in Arizona and possibly other states could pursue prosecution under their laws related to fraud.

State action demonstrates a practical check on federal pardons, enabling justice to reach those who commit offenses impacting multiple jurisdictions.