Ethics Investigation Launched Against GOP Congressman Arrested for Insider Trading

By Melanie Arter | August 8, 2018 | 1:13 PM EDT

Rep. Chris Collins (R-N.J.) (Screenshot)

(CNSNews.com) – Rep. Chris Collins (R-N.J.), who was arrested Wednesday on insider trading has been kicked off the House Energy and Commerce Committee, House Speaker Paul Ryan announced.

Additionally, the House Ethics Committee has launched a probe into the allegations.

“While his guilt or innocence is a question for the courts to settle, the allegations against Rep. Collins demand a prompt and thorough investigation by the House Ethics Committee. Insider trading is a clear violation of the public trust. Until this matter is settled, Rep. Collins will no longer be serving on the House Energy and Commerce Committee,” Ryan said in a statement.

Collins is accused of passing on information to family members regarding Innate Immunotherapeutics, an Austrailian biotech company on which Collins served as a board member.

Collins’s son, Cameron, and the father of his fiancée, Stephen Zarsky, have also been indicted by a federal grand jury.

According to the indictment, in June 2017, Collins passed along information that was not made public about the company’s drug trial results to his son so that Cameron could “make timely trades in Innate stock and tip others.”

Collins’ tip allowed the defendants to avoid over $768,000 in losses, because they sold their stock before the information became public, the indictment said.

In a statement to CNBC, Collins’s attorneys said they would “mount a vigorous defense” to clear Collins’s “good name.”

"It is notable that even the government does not allege that Congressman Collins traded a single share of Innate Therapeutics stock. We are confident he will be completely vindicated and exonerated."

 


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