[Rushtalk] GOP Rep. Chris Collins charged with insider trading

John Quayle blueoval57 at verizon.net
Sat Sep 1 12:15:44 MDT 2018


/*Another creature from the swamp......don't let the door hit you on the 
way out! Buh-bye!*/


On 9/1/2018 9:49 AM, Carl Spitzer {C Juno} wrote:
> *GOP Rep. Chris Collins charged with insider trading* *By Scott Wong 
> <http://thehill.com/author/scott-wong> and Sylvan Lane 
> <http://thehill.com/author/sylvan-lane> - 08/08/18 09:31 AM EDT 8,112 
> <http://thehill.com/homenews/house/400864-gop-rep-chris-collins-charged-with-insider-trading#bottom-story-socials> 
> * *35,860 *
> *in <javascript:void(0);>Share <javascript:void(0);> * 
> *<mailto:?subject=TheHill.com%3A%20GOP%20Rep.%20Chris%20Collins%20charged%20with%20insider%20trading&body=From%20TheHill.com%3A%20%0A%0AA%20top%20ally%20of%20President%20Trump%20on%20Capitol%20Hill%20has%20been%20arrested%20and%20charged%20with%20federal%20securiti...%0A%0Ahttp%3A//thehill.com/homenews/house/400864-gop-rep-chris-collins-charged-with-insider-trading> 
> *
> *Rep. Chris Collins 
> <http://thehill.com/people/chris-collins>**Christopher (Chris) Carl 
> Collins <http://thehill.com/people/chris-collins>Brutal summer for 
> Republicans 
> <http://thehill.com/homenews/senate/404473-brutal-summer-for-republicans> 
> Chris Collins turned down plea deal from feds before indictment: 
> report 
> <http://thehill.com/homenews/house/404178-chris-collins-turned-down-plea-deal-from-feds-before-indictment-report> 
> Juan Williams: Gaming out the midterms 
> <http://thehill.com/opinion/white-house/403726-juan-williams-gaming-out-the-midterms> 
> MORE <http://thehill.com/people/chris-collins> (R-N.Y.), a top ally of 
> President Trump <http://thehill.com/people/donald-trump>**Donald John 
> Trump <http://thehill.com/people/donald-trump>California lawmakers 
> pass stiffest net neutrality law in US 
> <http://thehill.com/blogs/blog-briefing-room/news/404663-california-pass-stiffest-net-neutrality-law-in-us> 
> Trump criticizes ABC/WaPo poll that found support for impeachment 
> <http://thehill.com/blogs/blog-briefing-room/news/404664-trump-criticizes-abc-wapo-poll-that-found-support-for> 
> Trump hails unions, touts trade moves in Labor Day message 
> <http://thehill.com/policy/finance/404662-trump-hails-unions-touts-trade-moves-in-labor-day-message>MORE 
> <http://thehill.com/people/donald-trump> on Capitol Hill, has been 
> arrested and charged with federal securities fraud related to an 
> Australian pharmaceutical company that counted him among its biggest 
> shareholders.*
>
> *Collins, who represents parts of western New York, turned himself in 
> to the FBI on Wednesday morning, news reports said. Lawyers for the 
> GOP lawmaker indicated that he would address the charges later Wednesday.*
>
> *ADVERTISEMENT* *An indictment 
> <https://www.documentcloud.org/documents/4639631-U-S-v-Christopher-Collins-Et-Al-Indictment-18-Cr.html> 
> from a grand jury also charges Collins's son, Cameron Collins, and 
> Stephen Zarsky, the father of Cameron Collins's fiancée.*
>
> *The insider trading case centers on Innate Immunotherapeutics, a 
> Sydney-based pharmaceutical company that tried to develop a drug to 
> fight advanced multiple sclerosis.*
>
> *Prosecutors allege that Collins, who had served on the company’s 
> board of directors, gave nonpublic information about drug trial 
> results to his son to help him "make timely trades in Innate stock and 
> tip others."*
>
> *Geoff Berman, U.S. attorney for the southern district of New York, 
> said Collins "cheated our markets and our justice system" by tipping 
> his son on the insider information.*
>
> *Collins "acted as if the law didn't apply to him,” Berman said at a 
> New York 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.”*
>
> *Innate had expected positive results from clinical tests of its 
> multiple sclerosis drug, but the treatment was not found to be 
> successful in clinical trials that ended in June 2017.*
>
> *According to the indictment, the company received the test results on 
> June 22 and halted trading of its stock in Australian markets pending 
> the announcement of the negative findings, but not in the U.S.*
>
> *The company's CEO shared the results with board members and top 
> executives that evening, according to the indictment, explaining, "I 
> have bad news to report." Investigators said Collins received the 
> email while attending the White House Congressional Picnic and was 
> stunned by the news.*
>
> *"Wow. Makes no sense. How are these results even possible???" Collins 
> allegedly replied to the email.*
>
> *Collins then allegedly shared the confidential test results with his 
> son, who later sold more than 1.3 million shares of Innate in U.S. 
> markets ahead of the June 26 announcement of the drug’s failure.*
>
> *Collins did not sell his Innate shares and lost roughly $17 million 
> after the results were announced, but his son allegedly avoided more 
> than $570,000 in losses because of the alleged tip from the congressman.*
>
> *Cameron Collins allegedly shared the test results with Zarsky, who 
> has also been charged with securities fraud. Zarsky allegedly sold 
> more than 300,000 shares of Innate after being tipped on the negative 
> test results, avoiding roughly $143,00 in losses.*
>
> *Collins and Zarsky are alleged to have shared the results with six 
> other unnamed individuals, some of whom bought and sold Innate stock 
> on their suggestion.*
>
> *“In the hours and days after learning of the drug trial results, 
> [Collins], his son and their associates exchanged a flurry of calls,” 
> said Steven Peikin, co-director of the Securities and Exchange 
> Commission's (SEC) Enforcement Division.*
>
> *“The investigation yielded a detailed footprint left by the 
> defendants, revealing their frantic efforts to sell shares and warn 
> others before Innate announced bad news.”*
>
> *Chris Collins, Cameron Collins and Zarksy are also alleged to have 
> lied to federal agents in April about their trading and 
> recommendations of Innate stock and their advance knowledge of the the 
> test results.*
>
> *In a brief statement, attorneys for Collins declared that the 
> three-term lawmaker is innocent.*
>
> *"We will answer the charges filed against Congressman Collins in 
> Court and will mount a vigorous defense to clear his good name.  It is 
> notable that even the government does not allege that Congressman 
> Collins traded a single share of Innate Therapeutics stock,” said 
> Jonathan Barr and Jonathan New of Baker Hostetler law firm.*
>
> *“We are confident he will be completely vindicated and exonerated.”*
>
> *While Collins is not alleged to have sold his own Innate shares, it 
> appears that he was technically unable to do so.*
>
> *Innate froze the trading of its shares in Australia, but not the 
> U.S., between when the results were received on June 22 and announced 
> on June 26. Publicly traded companies often freeze their stock ahead 
> of major announcements to prevent insider trades and manipulation.*
>
> *The congressman’s shares of Innate were held in Australia, preventing 
> him from selling the stock before the announcement sank its value.*
>
> *Collins in May 2017 had attempted to move his Innate shares, along 
> with those owned by Cameron and his daughter, from an Australian 
> transfer agent into a U.S. brokerage account, according to the 
> indictment. But the congressman was unable to transfer his and his 
> daughter's stock to the U.S.*
>
> *Collins was condemned quickly by retiring House Speaker Paul Ryan 
> <http://thehill.com/people/paul-ryan>**Paul Davis Ryan 
> <http://thehill.com/people/paul-ryan>Trump says he will 'take a look' 
> at increases for federal workers 
> <http://thehill.com/homenews/administration/404638-trump-says-he-will-take-a-look-at-federal-worker-raises> 
> Congress gives McCain the highest honor 
> <http://thehill.com/homenews/senate/404596-congress-gives-mccain-the-highest-honor> 
> The Hill's 12:30 Report — Sponsored by Better Medicare Alliance 
> — McCain honored at US Capitol 
> <http://thehill.com/homenews/1230-report/404556-mccain-lies-in-state-capitol-how-to-watch-funeral-livestream-pence-ryan-mcconnell-pay-tribute> 
> MORE <http://thehill.com/people/paul-ryan> (R-Wis.), who removed the 
> congressman from the House Energy and Commerce Committee after his 
> arrest.*
>
> *"While his guilt or innocence is a question for the courts to settle, 
> the allegations against Rep. Collins demand a prompt and thorough 
> investigation by the House Ethics Committee," Ryan said in a 
> statement. "Insider trading is a clear violation of the public trust."*
>
> *Collins has been under investigation by congressional officials for 
> his connections to Innate since 2017. An October 2017 report from the 
> Office of Congressional Ethics (OCE) 
> <http://thehill.com/homenews/house/355166-ethics-watchdog-rep-collins-may-have-violated-federal-law-over-stocks> found 
> that there was “substantial reason” to believe Collins had violated 
> federal law by sharing inside information with Innate investors.*
>
> *Collins's legal team said then that the report was “spurred by 
> unfounded accusations that trace their origin to political opponents,” 
> naming the late Rep. Louise Slaughter 
> <http://thehill.com/people/louise-slaughter>**Dorothy (Louise) Louise 
> Slaughter <http://thehill.com/people/louise-slaughter>Poll: Dem leads 
> by 24 points in race to replace Louise Slaughter 
> <http://thehill.com/homenews/campaign-polls/402977-poll-dem-leads-by-24-points-in-race-to-replace-louise-slaughter> 
> Reforms can stop members of Congress from using their public office 
> for private gain 
> <http://thehill.com/blogs/congress-blog/politics/402144-reforms-can-stop-members-of-congress-from-using-their-public> 
> GOP Rep. Chris Collins charged with insider trading 
> <http://thehill.com/homenews/house/400864-gop-rep-chris-collins-charged-with-insider-trading> 
> MORE <http://thehill.com/people/louise-slaughter> (D-N.Y.).*
>
> *Slaughter, who died in March, had asked the SEC, the acting U.S. 
> attorney for the Southern District of New York, the House Ethics 
> Committee and the OCE to investigate Collins over his stock pitches to 
> colleagues. Slaughter was a co-author of the STOCK Act, which bans 
> members of Congress from insider trading.*
>
> *And multiple Republican lawmakers told The Hill last year that 
> Collins had boasted about making money for other members of Congress 
> by urging them to invest in the company 
> <http://thehill.com/homenews/house/336842-exclusive-gop-lawmaker-talked-stocks-with-colleagues>.*
>
> *Former Health and Human Services Secretary Tom Price 
> <http://thehill.com/people/tom-price>**Thomas (Tom) Edmunds Price 
> <http://thehill.com/people/tom-price>Despite scandalous headlines, 
> Democrats must turn to policy 
> <http://thehill.com/opinion/campaign/403658-despite-scandalous-headlines-democrats-must-turn-to-policy> 
> True cost of rampant White House turnover: Inexperience breeds 
> incompetence 
> <http://thehill.com/opinion/white-house/403291-true-cost-of-rampant-white-house-turnover-inexperience-breeds> 
> Juan Williams: Trump weaves web of corruption 
> <http://thehill.com/opinion/white-house/402575-juan-williams-trump-weaves-web-of-corruption> 
> MORE <http://thehill.com/people/tom-price> was among those who bought 
> Innate stock when he was a Georgia congressman. So did House 
> Agriculture Committee Chairman Mike Conaway 
> <http://thehill.com/people/mike-conaway>**Kenneth (Mike) Michael 
> Conaway <http://thehill.com/people/mike-conaway>17 times Brennan has 
> torched Trump 
> <http://thehill.com/homenews/administration/402034-17-times-brennan-has-torched-trump> 
> GOP lawmaker calls for ethics rules changes after Collins charged with 
> insider trading 
> <http://thehill.com/homenews/house/401131-gop-rep-calls-for-ethics-rules-changes-after-collins-arrest> 
> GOP Rep. Chris Collins charged with insider trading 
> <http://thehill.com/homenews/house/400864-gop-rep-chris-collins-charged-with-insider-trading> 
> MORE <http://thehill.com/people/mike-conaway> (R-Texas), Rep. 
> Markwayne Mullin 
> <http://thehill.com/people/markwayne-mullin-0>**Markwayne Mullin 
> <http://thehill.com/people/markwayne-mullin-0>Ethics panel orders GOP 
> lawmaker to repay family business K 
> <http://thehill.com/homenews/house/401310-ethics-panel-orders-gop-lawmaker-to-repay-family-business-40k> 
> GOP lawmaker calls for ethics rules changes after Collins charged with 
> insider trading 
> <http://thehill.com/homenews/house/401131-gop-rep-calls-for-ethics-rules-changes-after-collins-arrest> 
> GOP Rep. Chris Collins charged with insider trading 
> <http://thehill.com/homenews/house/400864-gop-rep-chris-collins-charged-with-insider-trading> 
> MORE <http://thehill.com/people/markwayne-mullin-0> (R-Okla.) and Rep. 
> Billy Long <http://thehill.com/people/billy-long>**William (Billy) H. 
> Long <http://thehill.com/people/billy-long>GOP lawmaker calls for 
> ethics rules changes after Collins charged with insider trading 
> <http://thehill.com/homenews/house/401131-gop-rep-calls-for-ethics-rules-changes-after-collins-arrest> 
> GOP Rep. Chris Collins charged with insider trading 
> <http://thehill.com/homenews/house/400864-gop-rep-chris-collins-charged-with-insider-trading> 
> Singer Jason Mraz: Too much political 'combat' in Washington 
> <http://thehill.com/blogs/in-the-know/388129-singer-jason-mraz-too-much-political-combat-in-washington> 
> MORE <http://thehill.com/people/billy-long> (R-Mo.).*
>
> *Also last year, Collins was overheard by reporters in the Speaker’s 
> lobby bragging to someone on his cellphone that he’s made “many 
> millionaires” in Buffalo.*
>
> /*Avery Anapol, Emily Birnbaum and Megan Keller contributed*/
>
> /*Updated at 2 p.m.*/
>
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> http://thehill.com/homenews/house/400864-gop-rep-chris-collins-charged-with-insider-trading
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