Home News Economics New York Congressman Christopher Collins was arrested for insider trading

New York Congressman Christopher Collins was arrested for insider trading

Christopher Collins

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The New York Congressman Christopher Collins was arrested for federal allegations of misappropriation of securities and the use of insider information in a case involving an Australian biotech company.

The indictment charges Collins, the congressman’s son and the father of his son’s fiancee with conspiracy, wire fraud and other counts. Curiously, Christopher Collins was the first Republican congressman to formally support President Donald Trump’s bid for the White House. In total, the deals allowed the defendants and their supposed conspirators to avoid losses of over 768,000 USD, the prosecution says.

The indictment says that in June 2017 Christopher Collins provided his son with non-public information about the drug tests of the Australian company Innate Immunotherapeutics. At that time Collins was a member of the board of the company. According to a SEC lawsuit, his son, Cameron Collins, sold nearly 1.4 million shares of the company on the basis of this non-public information, and during this financial operation, the congressman and his son spoke at least nine times over the phone for a short time.

The Securities and Exchange Commission is also seeking to prohibit Collins from serving as a officer or director of a public company.

Collins’ lawyers say in an official statement that the government “does not claim that Congressman Collins has also traded one share of Innate Immunotherapeutics”.

“We are confident that he will be fully justified and rehabilitated”, said the lawyers of the New York Congressman Christopher Collins.