Published: Wed, August 08, 2018
Global Media | By Derrick Guzman

GOP Congressman Arrested on Insider Trading Charges

GOP Congressman Arrested on Insider Trading Charges

Chris Collins surrendered to federal agents in NY on Wednesday to face insider trading charges.

Rep. Chris Collins, R-New York, was arrested Wednesday and charged with insider trading relating to an Australian biotechnology company, according to federal prosecutors.

The Office of Congressional Ethics discovered there was "substantial reason to believe" Collins violated House rules and federal law by using inside information to make transactions with the company's stock. His son, Cameron Collins, and Stephen Zarsky, the father of Cameron's fiancee, were also indicted on the same charges.

"At the time Christopher Collins, the defendant, received this email, he was attending the Congressional Picnic at the White House", the indictment says.

A news conference to detail the charge is scheduled for noon in Manhattan.

Collins' lawyers noted in a statement that the government has not said the congressman traded any shares of the stock.

Charging documents said Innate was testing a drug called MIS416, to see if it was an effective treatment for Secondary Progressive Multiple Sclerosis.

Multiple GOP lawmakers told The Hill previous year that Collins had boasted about making money for other members of Congress by urging them to invest in the company, of which he is the largest stockholder.

Collins, who resigned in April from the Innate board, has denied wrongdoing.

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

Collins was one of President Trump's earliest congressional supporters, becoming the first member of the House to endorse Mr. Trump for president during the 2016 campaign. By selling stock before the results of the trial were publicly released, the three men and other unnamed individuals avoided $768,000 in losses. When the drug trials failed, the public announcement caused the stock price of Innate to plunge 92 percent.

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