New York Congressman Chris Collin of Buffalo has been indicted on federal charges of insider trading. The US Attorney alleges that Collins received an email from the CEO of an Australian biotech company that informed him that their multiple sclerosis drug had likely failed clinical trials. Collins was a Director of the company. Fifteen minutes later, Collins made seven calls to his son. The son subsequently sold 1.4 million shares of the company before the information became public. The son then notified four other co-defendants in the case, including his fiancé and his fiance’s parents. The news became public four days later and the stock plunged 92%. Collins has also been indicted for lying to the FBI. The indictment also named Cameron Collins, the Congressman’s son and his now father-in-law, Stephen Zarsky. The three were arraigned yesterday afternoon in New York City.
