Morning Briefing
Summaries of health policy coverage from major news organizations
Rep. Chris Collins Indicted On Charges Related To Insider Trading Following Probe Into His Ties To Drugmaker
CNBC: New York GOP Rep. Chris Collins Arrested Over Insider Trading Charges
Rep. Chris Collins, R-N.Y., has been arrested on insider trading charges lodged by the Justice Department, law enforcement officials said Wednesday morning. The indictment obtained from a federal grand jury also charges Collins' son, Cameron Collins, as well as the father of his fiancee, Stephen Zarsky. The indictment relates to "securities of Innate Immunotherapeutics ... an Australian biotechnology company on whose board of directors Christopher Collins served," the DOJ said. (Breuninger and Schwartz, 8/8)
Rochester (N.Y.) Democrat & Chronicle: Rep. Chris Collins Arrested On Federal Charges Relating To Securities Fraud
Specifically, Collins is accused of receiving inside information about negative clinical trial tests conducted by Innate, an Australian biotech company with which he has long been associated. The inside tip prompted Collins' son, and others to sell $1.78 million Innate shares shortly before the bad news was made public in June 2017 and the share price plummeted. (Lahman, Orr and McDermott, 8/8)
The New York Times: New York Congressman Chris Collins Is Charged With Insider Trading
In June 2017, just minutes after receiving a private email from the company’s chief executive that a test for the drug had failed, Mr. Collins, who sat on the firm’s board of directors and was one of its largest shareholders, called his son, Cameron Collins, who sold their shares in the company, avoiding losses of more than $750,000, the indictment said. “We will answer the charges filed against Congressman Collins in court and will mount a vigorous defense to clear his good name,” Mr. Collins’ lawyers, Jonathan Barr and Jonathan New, said in statement. “It is notable that even the government does not allege that Congressman Collins traded a single share” of the company’s stock. (Feuer and Goldmacher, 8/8)
Politico: GOP Rep. Collins Indicted, Charged With Securities Fraud
According to the indictment, the conspiracy allegedly began on June 22, 2017, while Collins was attending the White House's Congressional picnic. He received an email from Innate's CEO alerting him that the company's highly touted drug had failed in clinical trials. He replied, "Wow. Makes no sense. How are these results even possible???" (Cheney, 8/8)
The Wall Street Journal: New York Congressman Chris Collins Arrested On Insider-Trading Charges
Mr. Collins was the first member of Congress to endorse President Trump during the 2016 campaign, an important distinction with a president who prizes loyalty. Once considered a backbencher in the House, Mr. Collins’ stature has grown since Mr. Trump won the GOP nomination. (Hong and Peterson, 8/8)
