Rep. Chris Collins (R-NY) was arrested on Wednesday by federal law enforcement on securities fraud charges, a new report revealed.
According to NBC News’ Peter Alexander, Collins wasn’t the only one who was arrested. Collins’ son, Cameron, and Stephen Zarsky, the father of Cameron Collins’ fiancée, were also charged.
JUST IN: Rep. Chris Collins (R-NY), Trump’s earliest congressional backer, arrested by the FBI on securities fraud-related charges, via @jonathan4ny
— Peter Alexander (@PeterAlexander) August 8, 2018
The report states that the indictments allege Collins of passing “material, nonpublic information” last year about Australian biotech firm Innate Immunotherapeutics to his son so he “could use that information to make timely trades in Innate stock and tip others.”
It was revealed in the indictments that the trading scheme helped Collins and his group “avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate” after the nonpublic information had been released.
According to the indictments, Collins received an email from the chief executive of Innate while he was attending the annual Congressional Picnic at the White House.
Specifically, the email informed Collins that “top-line 12-month data… show no clinically meaningful or statistically significant differences in [outcomes] between [Innate’s experimental drug] and placebo… no doubt we will want to consider this extremely bad news.”