NEW YORK, NY
After being arrested on Wednesday and charged with insider trading, Chris Collins defiantly gave a speech later that evening and proclaimed his innocence. Collins said the charges would not deter him from running for re-election for his congressional seat. Saturday morning, word spread that the Republican congressman from New York had changed his tune.
Collins released a statement regarding the suspension of his re-election bid that he posted to his Twitter page.
In true 2018 Republican fashion, Collins made sure to blame the Democrats for every problem in the world and his own transgressions before going on to speak about suspending his re-election campaign, and saying that he would serve out the rest of his current term. Collins also said he looks forward to fighting the “meritless” charges and clearing his good name of any wrongdoing.
Collins said what a person in his situation is supposed to say, as he attempts to exude confidence, but make no mistake about it….CHRIS COLLINS IS IN DEEP SH*T! And he knows it too.
Collins, his son Cameron, and the father of Cameron’s fiance, Stephen Zarsky, were all charged with wire fraud, conspiracy to commit securites fraud, and multiple counts of securities fraud. USA Today (@USAToday) reports, the charges stem from Collins’ association with a biotech company named Innate Immunotherapeutics, which Collins is heavily invested in. Collins has been reported to have been using his clout to attempt to get everyone he encounters to invest in the company. But that’s not where Collins’ legal troubles come from. Collins received inside information about a failed clinical test by the company. Because of his position in the company, Collins received this type of info before the general public. A negative clinical trial of the company’s flagship drug was certain to cause the value of the stock to dip. It’s hard to predict how substantial the drop in the stock price would have been. Collins didn’t wait to find out. He took the inside info and passed it along to his son and others, so they could sell their shares before the rest of the public investors in order to avoid huge losses. This is illegal. This is the very definition of insider trading. Collins and other members of his circle managed to sell 1.78 million shares of the stock before news of the failed trials were made public. The others were mostly family of Collins’ and his son’s fiancee. The Collins crime family avoided $768,600 worth of losses from the swing-move pulled by the congressman. To make matters worse, Chris Collins has also been charged with lying to the FBI about the whole thing.
The criminal case against Collins, his son, and Zarsky has multiple “unnamed co-defendants involved. There’s a possibility those unnamed co-conspirators could be charged at a later date. The unnamed defendants are likely the family members, which leaves open the nasty consideration of family taking the stand and testifying against one another in the hopes of leniency. There is also the possibility that some top level names in the company may be vulnerable to charges too. This is probably going to get very ugly before everything is said and done.