As the most reliable and balanced news aggregation service on the internet, DML News offers the following information published by TheHill.com:
Federal law enforcement officials on Wednesday said Rep. Chris Collins (R-N.Y.) “cheated our markets and our justice system” by helping family avoid thousands of dollars in losses with insider information.
“Congressman Collins — who by virtue of his office helps to write the laws of our nation — acted as if the law didn’t apply to him,” said Geoff Berman, U.S attorney for the southern district of New York, at a press conference.“The charges today demonstrate once again that no matter what the crime and no matter who committed it, we stand committed in the pursuit of justice without fear or favor.”
“The charges today demonstrate once again that no matter what the crime and no matter who committed it, we stand committed in the pursuit of justice without fear or favor.”
The article goes on to state the following:
Collins was charged with securities fraud Wednesday related to his role as board member of an Australian pharmaceutical company in which he was heavily invested. The congressman allegedly shared non-public information with his son, Cameron, that spurred a series of trades based on insider information.
“The crime that [Collins] committed was to tip his son Cameron so that Cameron and a few others could trade on the news while the investing public remained in the dark,” Berman said.
The congressman, Cameron Collins, and Stephen Zarsky—the father of Cameron’s fiancee—were charged Wednesday with securities fraud, wire fraud and making false statements to federal officials.
Collins served as a board member for Innate Immunotherapeutics, a Sydney-based company that tried to develop a drug to fight advanced multiple sclerosis. Collins was also Innate’s largest shareholder.
CLICK HERE to view the complete press release by the Department of Justice.
THE HILL also reported from the press briefing:
The congressman’s shares of Innate were held in Australia, preventing him from selling the stock before the announcement sank its value. But Collins advised Cameron to sell his stock, and Cameron later told Zarsky and six other family members to do the same, according to the indictment.
Collins’ alleged tip helped Cameron, Zarsky, and other relatives avoid roughly $750,000 in losses they would have suffered without knowledge of Innate’s clinical failure. Collins lost $17 million after the announcement of the negative test results.
“This was the drop that was anticipated by the co-conspirators,” Berman said. “They could only sell those shares by virtue of the initial tip of inside information by Congressman collins”
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