N.Y. congressman Collins charged with insider trading
WASHINGTON >> Federal prosecutors charged Rep. Chris Collins, R-N.Y., one of President Donald Trump’s earliest congressional supporters, with insider trading on Wednesday, alleging the congressman schemed with his son to avoid significant losses in a biotechnology investment.
Collins’ son, Cameron Collins, and Stephen Zarsky, the father of Cameron Collins’ fiancee, were also charged.
The indictment, secured by the U.S. attorney in Manhattan, is related to Collins’ relationship with Innate Immunotherapeutics, an Australian biotech company that was developing a treatment for multiple sclerosis. Collins was the company’s largest shareholder and on its board of directors, giving him access to confidential corporate information.
The congressman illegally shared with his son bad news about a drug trial the company had been anticipating before it was announced publicly, according to prosecutors. Cameron Collins traded on the information and passed the news along to Zarsky. The trades allowed Cameron Collins and Zarsky to avoid $768,000 in losses, according to the indictment.
“Collins, who, by virtue of his office, helps write the laws of this country, acted as if the law did not apply to him,” U.S. Attorney Geoffrey S. Berman said at a news conference.
Collins, his son and Zarsky appeared before a federal judge in Manhattan on Wednesday afternoon. Each was to be released on $500,000 bond. They were ordered to turn over their passports and any firearms.
Collins, wearing a dark suit and white button-down shirt open at the collar, sat next to his attorney when asked by the judge how he would plea. He responded, “I plead not guilty.”
Cameron Collins and Zarsky also pleaded not guilty. The hearing lasted less than 20 minutes.
The next court hearing for all three men was set for Oct. 11.
In an earlier statement, attorneys representing the congressman said they “will mount a vigorous defense to clear his good name.” The statement said: “It is notable that even the government does not allege that Congressman Collins traded a single share of Innate Therapeutics stocks. We are confident he will be completely vindicated and exonerated.”
Collins faces multiple counts of securities and wire fraud and is also accused of lying to the FBI. The congressman turned himself in to the FBI on Wednesday morning.
House Speaker Paul Ryan, R-Wis., announced that Collins would be subject to an investigation by the House Ethics Committee and would be removed from the House Energy and Commerce Committee.
“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,” Ryan said. “Insider trading is a clear violation of the public trust.”