Congressman Chris Collins Arrested For Insider TradingCollins' son and the father of his son's fiancee were also charged.Rep. Chris Collins (R-N.Y.) has been arrested by the FBI for insider trading related to an Australian biotechnology company.
Collins, the largest shareholder of Innate Immunotherapeutics and a board member of the biotech firm, faces charges of securities fraud. His son and the father of his son’s fiancee were also indicted and charged with fraud.
He allegedly passed private information about the company to his son, Cameron Collins, who used the information to make timely trades and tip off others, according to the indictment.
The indictment says the congressman informed his son and Stephen Zansky, the father of Cameron Collins’ fiancee, about the unpublicized failure of a drug the company had developed, which would later cause stock prices to plummet. They sold their stocks in the company before the announcement.
Attorneys for the congressman released a statement Wednesday morning, noting that Collins would say more on the issue later in the day.
“It is notable that even the government does not allege that Congressman Collins traded a single share of Innate Therapeutics stock. We are confident he will be completely vindicated and exonerated,” according to the statement.
Chris Collins, one of Donald Trump’s earliest supporters in his presidential bid, reportedly talked up the company’s stock to his colleagues, including members of Congress, last year. At the time, he denied discussing Innate Immunotherapeutics with other Congress members, but he said he did tell some constituents about the company’s stock.
This is a developing story. Please check back for updates.