Rep. Christopher Collins, a Republican congressman from NY, was arrested Wednesday and charged with insider trading related to an Australian biotechnology company.
Collins, one of the largest shareholders of Innate Immunotherapeutics and a board member of the biotech firm, faces charges of securities fraud.
Collins broke the law by "passing material, nonpublic information regarding the drug trial results to his son.so that Cameron Collins could use that information to make timely trades in Innate stock and tip others", the indictment alleges. Cameron Collins, son of the 68-year-old legislator, was also arrested, along with Stephen Zarsky, whose daughter is engaged to the younger Collins.
In total, the three defendants avoided "over $768,000 in losses that they would have otherwise incurred" had they sold their stock after the information was made public, according to the indictment. The stock price rose as media reported on the men's holdings in the Australian company.
Collins, President TrumpDonald John TrumpFive takeaways from Ohio's too-close-to-call special election Mar-a-Lago insiders provided input on VA policy, personnel decisions: report Trump claims victory as Balderson holds on to slim lead in Ohio MORE's top defender on Capitol Hill, turned himself in to the Federal Bureau of Investigation on Wednesday morning, according to multiple reports.
Collins' lawyers noted in a statement that the government has not said the congressman traded any shares of the stock.
Attorneys for Collins said they would "mount a vigorous defense to clear his good name".
No allegations of misconduct have been leveled against him or Conaway, a former chairman of the House Ethics Committee.
Collins, who is one of the wealthiest members of Congress, was the first member to publicly endorse Donald Trump during the 2016 presidential campaign.