New York GOP Rep. Chris Collins arrested on insider trading charges

New York GOP Rep. Chris Collins arrested on insider trading charges

The indictment obtained from a federal grand jury also charges Collins' son, Cameron Collins, as well as the father of his fiancee, Stephen Zarsky.

Republican Rep. Christopher Collins of NY, the first member of Congress to support President Trump during his campaign, has been charged with insider trading Wednesday.

Collins passed nonpublic information about Innate's drug trial results to his son in order to help him "make timely trades in Innate stock and tip others", the indictment alleges.

Rep. Christopher Collins bought millions of dollars in stocks in an Australian drug company - and convinced five other GOP lawmakers to invest - all while pushing legislation aimed at helping the company succeed, according to a report.

In a statement, the congressman's legal counsel addressed the accusations, expressing confidence he will be vindicated and exonerated in court.

His district covers parts of western NY between Buffalo and Rochester. "How are these results even possible?"

The indictment charges the congressman, his son Cameron Collins, and Stephen Zarsky with securities fraud, wire fraud, one count of conspiracy to commit wire fraud, and counts of making false statements.




Collins was the biggest investor in the company, which is developing treatments for multiple sclerosis, and he reportedly was pitching it as a good investment to friends and House colleagues. The charges were announced and the indictment unsealed on Wednesday, Aug. 8, 2018.

For their role in the alleged scheme, Chris Collins, Cameron Collins and Zarsky are facing 11 felony charges each. "[Rep. Collins] is expected to appear in federal court in lower Manhattan later today", CNBC reports.

"Access to this kind of information carries with it significant responsibility, especially those in society who hold a position of trust", said William Sweeney, assistant director of the FBI New York field office.

"The Congressman did not trade his shares, because of restrictions involving Innate shares in Australia, but he "instead tipped" his son, who quickly moved the next morning 'to sell approximately 16,508 shares of Innate". On the next trading day, the company's stock plunged 92 percent.

Collins' trades in Innate Immunotherapeutics had already been the subject of a House ethics probe.

Tom Price, R-Ga. Price went on to become President Donald Trump's first secretary of the Health and Human Services Department.

In a statement published by the Times, Jonathan Barr and Jonathan New - serving as attorneys for Collins - responded to the allegation. Over-the-counter trading continued, however, in the US, where Cameron Collins' and Zarky's shares were held.

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