New York Rep. Chris Collins indicted on insider trading charges

  • 2018-08-08
  • Erik Ortiz and Jonathan Dienst
  • NBC News
Rep. Chris Collins, a Republican from upstate New York, surrendered to the FBI on Wednesday morning on federal charges of using his position on the board of an Australian biotech firm to help his family make illicit stock trades — and avoid more than $768,000 in losses.

Collins, 68, faces insider trading charges along with his son, Cameron Collins, and Stephen Zarsky, the father of Cameron Collins' fiancée, according to the U.S. Attorney's Office in the Southern District of New York.

The case involves Innate Immunotherapeutics, a North Melbourne-based pharmaceutical company. The elder Collins served on the board and is one of the firm's biggest shareholders, owning nearly 17 percent of the stock, which is traded on the Australian Securities Exchange and in the United States on the over-the-counter market.

According to a grand jury's indictment, Collins in June 2017 passed along material that was nonpublic regarding the results of a drug trial — meant to treat a form of multiple sclerosis — so his son "could use that information to make timely trades in Innate stock and tip others."

The drug trial had failed — and Innate's stock would eventually tumble by 92 percent.
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