Rep. Chris Collins Indicted On Charges Related To Insider Trading Following Probe Into His Ties To Drugmaker
Rep. Chris Collins (R-N.Y.) is alleged to have passed inside information on the failure of an Innate Immunotherapeutics' drug trial to his son, who then passed it to another alleged conspirator. Collins describes the charges as "merit-less" and says he will stay in office and run for reelection. Meanwhile, House Speaker Paul Ryan says that Collins would not serve on the House Energy and Commerce Committee "until this matter is settled."
The New York Times:
New York Congressman Chris Collins Is Charged With Insider Trading
Representative Chris Collins was at the Congressional Picnic on the South Lawn of the White House last summer when he received an unexpected email from the head of a drug company in which he was heavily invested. The company’s only product — an experimental treatment for multiple sclerosis — had just failed a do-or-die scientific trial. What Mr. Collins did next, apparently in a state of panic, forms the core of a federal indictment unsealed on Wednesday in New York that accuses him of insider trading and lying to federal agents. Federal prosecutors charged Mr. Collins with brazenly using his private information about the company to help his son and others avoid financial disaster. (Feuer and Goldmacher, 8/8)
The Associated Press:
GOP Congressman From New York Charged With Insider Trading
Collins, a staunch supporter of President Donald Trump who was among the first sitting members of Congress to endorse his candidacy for the White House, pleaded not guilty to an indictment unsealed at a court in Manhattan. The indictment charges Collins, his son and the father of the son's fiancee with conspiracy, securities fraud, wire fraud and making false statements to the FBI. Speaking to reporters in Buffalo hours after his release on bail, Collins, 68, professed his innocence and said he would remain on the ballot for re-election this fall. (Hays, 8/8)
The Wall Street Journal:
New York Congressman Chris Collins Arrested On Insider-Trading Charges
According to the indictment, Rep. Collins passed the confidential results to his son, Cameron Collins, so he could trade on the tip. Prosecutors say his son sold nearly 1.4 million Innate shares and gave the information to at least four individuals, including his fiancée and her father, Stephen Zarsky. Mr. Zarsky then sold all of his Innate shares and shared the tip with at least three other individuals, including his brother and sister, before the public release of the trial results, according to the indictment. (Hong and Peterson, 8/8)
Politico:
GOP Rep. Chris Collins Charged With Securities Fraud
"Congressman Collins, who by virtue of his office helps to write the laws of our nation, acted as if the law didn't apply to him," said Geoffrey Berman, the U.S. attorney for the Southern District of New York, announcing the charges. (Cheney, Vielkind and Nahmias, 8/8)
CQ HealthBeat:
Chris Collins Continues Re-Election Bid Following Arrest
Collins highlighted his long affiliation with the Australian biotechnology company, saying he was the biggest investor and lost most of the money he invested when it failed a clinical drug trial to treat multiple sclerosis. "I will mount a vigorous defense in court to clear my name," Collins said. "I look forward to being fully vindicated and exonerated, ending any and all questions relating to my affiliation with Innate." (Ruger, 8/8)
The Washington Post:
Rep. Chris Collins Charged With Insider Trading, Federal Prosecutors Announce
The charges could turn into a headache for several House Republicans who invested in Innate Immunotherapeutics at Collins’s encouragement. Prosecutors did not allege in the indictment that Collins tipped off any of his colleagues in Congress about the failed drug trial before it was made public, but Democrats pounced on the charges and said those lawmakers would have to answer tough questions about their investments in Innate. (Merle and DeBonis, 8/8)
Kaiser Health News:
As An Investor In Biotech Stock, Republican Chris Collins May Have Overshared
House Speaker Paul Ryan removed Collins from the powerful Energy and Commerce Committee on Wednesday and called for a new investigation by the House Ethics Committee. Last year, the panel began looking at evidence that Collins had previously “shared material, nonpublic information” on Innate. (Hancock, Kopp and Bluth, 8/8)
Stat:
Inside N.Y. Rep. Chris Collins’ Painful Education In Biotech
Innate was never a blue-chip investment; at its peak, it was worth less than $1.25 per share. Its milestones, press releases, and pronouncements of success were met with indifference by the market. And there might have been other reasons for the congressman to be cautious. Innate had a long road ahead in the risky business of drug development. It hadn’t started a Phase 3 trial of its drug; its mid-stage trial involved only 93 patients. But Collins, who once owned about 17 percent of the company, always kept the faith. (Garde, 8/8)
The Associated Press:
Indicted Rep. Collins Was Early Loyalist To Trump
Collins, 68, backed Trump on Feb. 24, 2016 — well before it was clear Trump had a shot at winning the Republican nomination in a crowded field of seasoned politicians. But that’s why, Collins said at the time, he was backing Trump. He said the country needs “a chief executive, not a chief politician.” Collins became one of Trump’s most ardent and public backers, promoting him as a businessman who would boost the economic fortunes of areas that have suffered. (Kellman, 8/8)
