GOP Rep. Chris Collins Hit With Insider Trading Charges

  • GOP Rep. Chris Collins Hit With Insider Trading Charges

GOP Rep. Chris Collins Hit With Insider Trading Charges

The U.S. attorney for the Southern District of NY is expected to detail the charges in a press conference at noon.

In addition to Collins himself, Collins' son, Cameron, and Stephen Zarsky, the father of Cameron Collins' fiancée, were also charged as part of the indictment for securities fraud.

According to the indictment, the defendants tried to get early word on the results of tests by Innate Immunotherapeutics Limited.

The Republican congressman, who has served New York's 27th District since 2013, surrendered to federal agents in Manhattan on Wednesday morning and is expected to appear in federal court in lower Manhattan later in the day. When the House Ethics Committee began investigating the stock trades a year ago, his spokeswoman called it a "partisan witch hunt".

In October, a congressional ethics investigation determined there was "a substantial reason to believe" Rep. Collins violated federal law when he promoted stock in Innate Immunotherapeutics using insider information. "We are confident he will be completely vindicated and exonerated", Baker Hostetler attorneys Johnathan Barr and Jonathan New said in the statement. They sold their stocks in the company before the public announcement, which caused the company's stock prices to drop by 92 percent.

Prosecutors allege that Collins passed along secrets to his son, Cameron, in June 2017. The indictment says the trades allowed Cameron Collins and others to avoid more than $768,000 in losses. They say Zarsky traded on it and tipped off at least three others.

This led to three trades, it is alleged, that helped the defendants avoid $768,000 USA in losses.