Chris Collins, a Republican representative from New York, has been arrested after federal prosecutors indicted him for taking part in insider trading schemes.
On August 8th, federal prosecutors laid out charges against Collins, his son and one other man with 13 different charges related to insider trading. According to prosecutors, the trading scheme focused around a pharmaceutical company based in Australia. Collins and the other people being charged allegedly acted on nonpublic information regarding the results of a recent drug trail for profit. The team of men reportedly used this information to trade the pharmaceutical company’s stock. To make matters worse, Collins was serving as a board member for the company.
The indictment alleges that Collins didn’t personally profit from the nonpublic information, but he did pass along the information to his son who did execute trading. His son reportedly told others about the information, so they could profit off of insider trading too. Prosecutors have determined that the actions of the group of defendants likely saved them over $768,000 in losses they would have incurred after the information of the drug trials became public. The indictment further alleges that all three men lied to federal agents about their actions.
All three defendants pleaded not guilty to the charges and were required to pay a $500,000 personal recognizance bond. Until the matter is resolved, Collins will be removed from the House Energy and Commerce Committee. Congressman Collins has publicly denied the charges and has vowed to fight them. He believes that he will still win re-election despite the controversy.