NY congressman arrested on insider trading charges

Glen Norman
August 8, 2018

Rep. Chris Collins (R-N.Y.) has been arrested by the Federal Bureau of Investigation for insider trading related to an Australian biotechnology company.

Attorneys representing Collins said in response to the indictment that they are confident the congressmen will be "completely vindicated and exonerated", NBC producer Alex Moe reported.

"Yeah, on his stock tip", the same unnamed lawmaker replied, according to the Hill.

"Throughout my tenure in Congress I have followed all rules and ethical guidelines when it comes to my personal investments", Collins said in an statement when he resigned.

Since his inauguration, Collins has continued to defend Trump. He serves on the Health subcommittee of House Energy and Commerce. The allegation is that Collins told his son Cameron nonpublic information about the company's drug trials in order to facilitate "timely trades".

According to the indictment, after Collins learned a trial regarding a drug to treat multiple sclerosis failed, he contacted his son, who traded on the information. According to the indictment, "All of the trades preceded the public release of the negative drug trial results and were timed to avoid losses that they would have suffered once the news became public". Reps. John Culberson of Houston and Mike Conaway of Midland had also bought shares in the firm, though they apparently didn't dump shares shortly before the price crashed - unlike Collins' son, whose well-timed sale is at the heart of the insider trading case.

He and the other defendants are charged with securities and wire fraud, conspiracy and lying to investigators.

A GOP congressman from NY is arrested and facing charges related to insider trading.

After Collins surrendered to the FBI, Speaker Paul D. Ryan announced he would no longer sit on the House Energy and Commerce committee.

Correction: This story originally misstated Collins sale of 4 million shares in Innate Immunotherapeutics between 2016 and 2018.

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