Collins passed nonpublic information about Innate's drug trial results to his son in order to help him "make timely trades in Innate stock and tip others", the indictment alleges. Collins, per the indictment, served on the company's board of directors.
The US Attorney for the Southern District of NY scheduled a news conference to announce insider trading charges against Christopher Collins, a Republican Congressman representing the 27th District of NY, his son Cameron Collins, and Stephen Zarsky, the father of Cameron Collins's fiancee. Cameron is then alleged to have sold the shares - avoiding a loss of approximately $750,000.
In a statement published by the Times, Jonathan Barr and Jonathan New - serving as attorneys for Collins - responded to the allegation.More news: British politician Boris Johnson asked to apologize for burka comments
In October, a congressional ethics investigation determined there was "a substantial reason to believe" Rep. Collins violated federal law when he promoted stock in Innate Immunotherapeutics using insider information.
This led to three trades, it is alleged, that helped the defendants avoid $768,000 U.S. in losses.
Multiple GOP lawmakers told The Hill previous year that Collins had boasted about making money for other members of Congress by urging them to invest in the company, of which he is the largest stockholder.More news: Imran Khan questioned by anti-graft body
"We are confident he will be completely vindicated and exonerated", they said in a statement.
The congressman will speak to the charges later Wednesday, they said.
During the tax reform debate, when his fellow New York GOP members of Congress were up in arms about a provision that would likely raise taxes on many New Yorkers, Collins voiced support for the plan.More news: Jose Mourinho Calls On Ed Woodward To Fix 'Difficult Season' Ahead