N.Y. Rep. Chris Collins arrested on insider trading charges

Rep. Chris Collins R-NY. speaks in Cleveland

Collins served on the board of the company and is among its largest shareholders. They say Cameron Collins traded on the inside information and passed it to a third defendant, Stephen Zarsky.

Prosecutors at the US Attorney's Office for the Southern District of NY alleged in an indictment that Collins and the other defendants used nonpublic information about the results of a drug trial to trade on the stock of the pharmaceutical company, Innate Immunotherapeutics Limited, of which Collins was a board member.

The company's CEO emailed Collins and other Innate directors on June 22, 2017, to say the drug had failed. On the next trading day, the company's stock plunged 92 percent.

"The crime that [Collins] committed was to tip his son Cameron so that Cameron and a few others could trade on the news while the investing public remained in the dark", Berman said.

Cameron Collins, the son, and his fiancée's father, Stephen Zarsky, are also charged with insider trading of Innate Immunotherapeutics Limited stocks.

Attorneys for Collins said they would "mount a vigorous defense to clear his good name". Collins reportedly used information from negative clinical trial tests conducted by a pharmaceutical company named Innate.

The pro-Trump politician, who is up for re-election in November, has been a member of Congress since 2013, representing suburban and rural areas around the New York State city of Buffalo.

"They could only sell their shares by virtue of the initial tip of inside information by Congressman Collins".

Democrats were helped along by some serious charges from federal prosecutors in NY. "This follows the company previously suggesting a great response to its drug and touting that it stood to generate as much as $3 billion in profits in this country alone", Slaughter said in a statement. "The charges today demonstrate once again that no matter what the crime and no matter who committed it, we stand committed in the pursuit of justice without fear or favor".

Chris Collins surrendered to federal agents in NY on Wednesday to face insider trading charges.

"The Congressman did not trade his shares, because of restrictions involving Innate shares in Australia, but he "instead tipped" his son, who quickly moved the next morning 'to sell approximately 16,508 shares of Innate".

Collins was an early Trump supporter and one of the president's liaisons in Congress.

As a result, Cameron Collins avoided $570,900 in losses. "Makes no sense. How are these results even possible???"

In a statement published by the Times, Jonathan Barr and Jonathan New - serving as attorneys for Collins - responded to the allegation.

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