The U.S. 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 fiancée.
The defendants are accused of securities fraud, wire fraud, conspiracy, and making false statements, all related to publicly traded stocks of an Australian biotechnology company, Innate Immunotherapeutics.
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.
Chris Collins' lawyers responded swiftly, insisting he will be "completely vindicated". Price and Collins purchased almost $1 million in discounted stock in the company. The charges were announced and the was indictment unsealed in New York City on Wednesday. He added that the U.S. Attorney's Office for the Southern District will give a press conference on the arrest at noon.
Prosecutors say the three avoided over $768,000 in losses by trading ahead of the public announcement of the failed drug trials.
The House Ethics Committee investigated Collins' ties to the Australian biotechnology company in 2017 after the Office of Congressional Ethics, an independent watchdog group, recommended the committee launch a full investigation.
Collins gained prominence for being one of the earliest Capitol Hill backers of President Donald Trump.
On the day after the trial results were released, the company's stock lost 92 percent of its value.