New York congressman charged with insider trading

New York congressman charged with insider trading

New York Congressman Christopher Collins was charged [indictment, PDF] Wednesday with insider trading, as well as lying to the FBI [official website].

The indictment alleges that Collins received inside information pertaining to the effectiveness of a medical vaccine from the drug manufacturer, Innate, before the information was made public in 2017. Collins was a member of Innate’s Board of Directors and holds a controlling share of the company’s stocks. Upon learning that the drug was not projected to be effective in treating multiple sclerosis, Collins shared the information with his son, Cameron Collins, as well as a few other individuals, despite the fact that such information was legally required to remain secret until the drug manufacturer decided to disclose the information to the public. The tip that Collins provided led his son and associates to sell their shares in the drug company, allowing them to avoid $786,000 in losses.

According to the indictment, when this drug information became public, Innate’s stock price dropped 92 percent. According to the indictment, Collins attempted to conceal his and his son’s actions by informing the press that they sold their stocks right after the information of the drug’s ineffectiveness became public, and as a result, the Collinses sustained financial losses.

The indictment charges Collins, his son and their associates with 13 counts, including securities fraud, wire fraud and making false statements.