Congressman Chris Collins, relatives indicted on insider trading

Congressman Chris Collins, relatives indicted on insider trading

Congressman Chris Collins, relatives indicted on insider trading

Christopher Collins, an upstate NY politician and the first member of Congress to endorse Donald Trump, has been indicted on insider trading charges.

The congressman's son and his son's father-in-law have also been indicted on charges related to insider trading.

The charges say that the Congressman's son, Cameron Collins, used information from his father to trade his stock in Innate, and also passed it on to his father-in-law, who forwarded to others as well.

Prosecutors at the US Attorney's Office for the Southern District of NY alleged in a complaint that Collins and the other defendants used nonpublic information about the results of a drug trial to trade on the stock of the pharmaceutical company, Innate Immunotherapeutics Limited, of which Collins was a board member.

A spokesman for the U.S. Attorney's office for the Southern District of New York in New York City says the congressman surrendered to authorities and is under arrest.

Lawyers for Collins released a statement expressing confidence he would be "completely vindicated and exonerated".

"Congressman Collins violated his duty to keep innate information secret", said Geoffrey Berman, the US attorney for the Southern District of NY, in a news conference Wednesday.

"Rep. Christopher Collins of NY has been arrested and indicted on charges tied to securities fraud".

The holdings from Long, Mullin and Collins make three GOP members of the Health subcommittee that have owned and/or sold Innate stock within the past two years.

When news that it had failed broke on 26 June 2017, the Innate stock price plummeted 92% in a single day.

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

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

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

Collins' attorneys said they plan to "mount a vigorous defense to clear his good name".

Federal prosecutors said the charges were straightforward - that Collins wrongly took non-public information, and gave it to his son, and his son's in-laws.

Mr Collins, who was at the congressional picnic at the White House when he received the mail, allegedly responded: "Wow". But Collins advised Cameron to sell his stock, and Cameron later told Zarsky and six other family members to do the same, according to the indictment.

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