GOP congressman busted for insider trading

GOP congressman busted for insider trading

Chris Collins was arrested by the Federal Bureau of Investigation on insider trading charges.

His district covers parts of western NY between Buffalo and Rochester. They believe it to be the first insider-trading case against a sitting congressman.

The charges say that the Congressman's son, Cameron Collins, used information from his father to trade his stock in Innate, and also passed it on to his father-in-law, who forwarded to others as well.

He quickly called his son to tip him off, federal prosecutors from the southern district of NY said.

That allowed them, prosecutors allege, to avoid more than $768,000 in losses they would have incurred if they had traded the stock after the drug trial results became public.

The congressman is accused of tipping off his son about the results of Innate's failed drug trial before the results were publicly released in June 2017. "We are confident he will be completely vindicated and exonerated", the statement reads. "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". An attorney for Zarsky declined to comment.

Collins was the biggest investor in the company, which is developing treatments for multiple sclerosis, and he reportedly was pitching it as a good investment to friends and House colleagues.

Collins is on the board of directors for the company.

"No doubt we will want to consider this extremely bad news", the executive wrote. "Even with this hanging over his head, that's a decision he's going to have to make".

Collins then called his son, Cameron, to tell him the results, according to the indictment.

"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", said House Speaker Paul Ryan, who took Collins off the powerful House Energy and Commerce Committee hours after the indictments were made public.

Collins and top company executives expected the drug to pass clinical trials, which would significantly raise the value of the company's stock. The charges were announced and the was indictment unsealed in New York City on Wednesday. "They could only sell those shares by virtue of the initial tip of inside information by Congressman Collins". Price said he never received information that could be considered a stock tip and denied any wrongdoing. The stock price rose as media reported on the men's holdings in the Australian company.

Price resigned as health secretary under criticism for taking pricey charter flights at taxpayers' expense.

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