Published: Wed, August 08, 2018
World Media | By Cesar Oliver

Congressman Chris Collins Arrested For Insider Trading

Congressman Chris Collins Arrested For Insider Trading

Republican Reps. John Culberson of Texas and Markwayne Mullin of Oklahoma also held stock in the company, according to their financial disclosures.

The U.S. attorney for the Southern District of NY is expected to detail the charges in a press conference at noon. He will be arraigned later Wednesday.

Attorneys for Cameron Collins said, "We intend to mount a vigorous defense on behalf of our client".

Collins's lawyers say they will clear Collins' "good name" and cite the indictment's lack of any allegation that Collins himself "traded a single share of Innate Therapeutics stock". "We are confident he will be completely vindicated and exonerated", Baker Hostetler attorneys Johnathan Barr and Jonathan New said in the statement. "Federal prosecutors said Collins tipped his son to the failure of a test drug for multiple sclerosis", he writes.

The company had expected the trial to be successful throughout that year. And because Innate "had no other significant products in development, its stock prices was tied to the success of MIS416", the court documents state.

Western New York Republican Congressman Chris Collins has been indicted on insider trading charges, according to court documents unsealed in Manhattan federal court on August 8.

Collins' arrest for insider trading could be a gift for Democrat Nathan McMurray.

Mr Collins, who was at the congressional picnic at the White House when he received the mail, allegedly responded: "Wow".

Collins is on the board of directors for the company.

However, prosecutors say this was because he "was already under investigation by the Office of Congressional Ethics in connection with his holdings in, and promotion of, Innate". They believe it to be the first insider-trading case against a sitting congressman.

Collins, 68, has served in the House since 2012 and has planned on running for a fourth term in the November congressional elections.

Price, who was President Trump's first HHS Secretary until resigning in late September of 2017, may have made out the best of any lawmaker who bought the Innate stock - Price was forced to sell his stock in February 2017 as part of a divestment agreement when he joined the Trump Cabinet.

He accused Collins of tipping off his son and family and a friend to trade stock in a biotech company before drug trial results caused the stock to drop, saving some $768,000. One online trade was made while he was on the phone with his father. Cameron is then alleged to have sold the shares - avoiding a loss of approximately $750,000.

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