NY congressman arrested on insider trading charges

NY congressman arrested on insider trading charges

NY congressman arrested on insider trading charges

The congressman allegedly shared non-public information with his son, Cameron, that spurred a series of trades based on insider information.

Rep. Collins, Cameron Collins, Zarsky, and unnamed co-conspirators reportedly avoided $768,000 in losses by selling their stock in Innate Immunotherapeutics Limited before the results of a failed drug trial came to light.

Successful completion of the trial was necessary for commercialization of the production in the US, which was meant to treat secondary progressive multiple sclerosis, a stage of the disease that indicates the patient's condition is worsening despite treatment. When the drug trials failed, the public announcement caused the stock price of Innate to plunge 92 per cent.

Collins' attorneys said they plan to "mount a vigorous defense to clear his good name". Price and Collins purchased almost $1 million in discounted stock in the company.

Two lawyers for Collins, Jonathan Barr and Jonathan New, said in a statement that they were confident he would be "completely vindicated and exonerated".

Collins, a three-term incumbent representing New York's 27th congressional district, is facing re-election this fall.

"Access to this kind of information carries with it significant responsibility, especially those in society who hold a position of trust", said William Sweeney, assistant director of the FBI New York field office. Collins' value in Innate went from $25,000,001 to $1,000,001, according to his most recent financial disclosure.

"Despite the continued partisan attacks insinuating otherwise, Congressman Collins has followed all ethical guidelines related to his personal finances during his time in the House and will continue to do so", Michael McAdams told the Daily Beast. "How are these results even possible???" he wrote to the CEO of Innate.

"Congressman Collins cheated our markets and our justice system", said Geoff Berman, the interim U.S. Attorney for the Southern District of NY.

A statement from Collins's attorneys was posted on his House website.

While his guilt or innocence is a question for the courts to settle, the allegations against Rep. Collins demand a prompt and thorough investigation by the House Ethics Committee.

Among the company's investors were Collins' daughter, Caitlin, his son, Cameron, and Rep.s Tom Price, the former Health and Human Services secretary who previously represented Georgia, Mike Conaway of Texas, Doug Lamborn of Colorado, Billy Long of Missouri and Markwayne Mullin of Oklahoma, the Daily Beast reported previous year.

Collins was one of President Donald Trump's earliest supporters and acted as the congressional liaison for Trump's 2016 campaign.

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