Rep. Chris Collins, R-New York, has ended his re-election campaign amid charges of insider trading in an Australian biotechnology firm.
The congressman, who represents a district near Rochester, said Saturday that he would suspend the campaign. FBI agents arrested Collins Wednesday on charges of securities fraud, wire fraud and making false statements to the bureau, in connection with his activities as a board member of Melbourne, Australia-based Innate Immunotherapeutics.
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Denying the charges, Collins had initially said he would continue to seek re-election. In the statement Saturday, he maintained that the charges were “meritless” and said he would stay in office for the remainder of his term.
“After extensive discussions with my family and my friends over the last few days, I have decided that it is in the best interests of the constituents of [New York’s 27th district], the Republican Party and President Trump’s agenda for me to suspend my campaign for re-election to Congress,” Collins’ statement read. “I will also continue to fight the meritless charges brought against me and I look forward to having my good name cleared of any wrongdoing.” Collins was the first congressional Republican to endorse Trump’s candidacy.
According to the indictment, Collins passed negative results from Innate’s Phase IIb study of the drug MIS416 in secondary progressive multiple sclerosis to his son after having obtained them from the company’s CEO on June 22, 2017, but ahead of the company making them public, on June 27. The son, Cameron, then allegedly sold nearly 1.4 million shares, while his future father-in-law, Stephen Zarsky, and six unnamed co-conspirators – including his fiancée – sold as well. Christopher Collins held a 16.8 percent stake in Innate, while his son, Cameron, held a 2.3 percent share.
The elder Collins was already under investigation by the Office of Congressional Ethics for his relationship with Innate. The indictment claims that the three defendants and alleged co-conspirators involved avoided $768,000 in losses that they would otherwise have incurred had they waited until the results became public.
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The congressman himself did not make the trade, as his stock was held under the Australian Stock Exchange, which had suspended trading in Innate shares ahead of the announcement at the company’s request. However, Cameron’s shares were purchased via the over-the-counter market in the US, where they continued trading, thus enabling him, Zarsky, his fiancée and others to sell. A statement from Collins’ legal representatives at law firm Baker Hostetler called it “notable” that he did not trade any shares, though MedCity News sister publication Above the Law noted that one does not need to trade shares to be guilty of insider trading.
Photo: Wikipedia
