New York Congressman Chris Collins Arrested on Insider-Trading Charges

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While Collins bought the stocks before a crash, Culberson bought at a peak price in January 2017, the Houston Chronicle reported.

The company's stock price fell more than 90 percent after results of the drug trial were released publicly, the documents state.

The representative, who denies the charges, is not accused of selling stocks himself.

Cameron Collins is accused of passing on that information to his fiancee's father, Stephen Zarsky, and others, who also benefited financially from the insider knowledge.

Collins had been under a U.S. House Ethics Committee review over questions about whether he had received inside information about the stock - and there had also been stories about whether he wrongly forwarded information to other lawmakers, who purchased stock as well.

The office investigated allegations that he benefited by having access to discounted stock because of his status as a congressman.

In addition, Mr Collins' shares were held in Australia, unlike his son's shares, which could be traded in the USA market.

In a statement to CNBC, attorneys for Collins vowed to "mount a vigorous defense to clear his good name".

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Chris Collins' lawyers responded swiftly, insisting he will be "completely vindicated".

The trial results were made public a week later, with Innate stock losing 92 per cent of its value in off-exchange trading.

A GOP congressman from NY is arrested and facing charges related to insider trading.

A successful drug trial was needed before the drug could be sold commercially.

FBN's Ashley Webster on the indictment of Rep. Chris Collins, (R-N.Y.), on charges of insider trading. The outside, non-partisan Office of Congressional Ethics began a review of Collins' activity in March 2017 and voted to send its findings to the House ethics panel that July, which can formally launch investigations and recommend any sanctions against any lawmaker it determines has broken any rules. "How are these results even possible?" Over-the-counter trading continued, however, in the USA, where Cameron Collins' and Zarky's shares were held. He too then proceeded to tip others.

Collins, his son and Zarsky also allegedly lied to Federal Bureau of Investigation agents in April about their trading of Innate stock and their advance knowledge of the test results.

The defendants have been indicted on multiple counts of securities fraud, and one count of wire fraud, one count of conspiracy to commit wire fraud, and one count each of making false statements. In 2012, Congress passed the STOCK Act to make it illegal for members of Congress to buy and sell stocks based off information they receive as a result of their government position.

The House Ethics Committee declined to comment on the indictment Wednesday.