Rep. Chris Collins, one of the wealthiest members of Congress, was arrested on charges insider trading on Wednesday. Collins is accused of telling his son and his son's father-in-law about the disappointing results ahead of the public announcement, leading them to unload stocks before the drop. His son allegedly both acted on the information and conveyed it to Stephen Zarsky, the father of his fiancee.
Chris Collins is a three-term Republican incumbent who represents New York's 27th Congressional District.
The Office of Congressional Ethics recommended the House ethics committee dismiss a third charge against Collins regarding a discount he received on a private sale of Innate stock because he was a member of Congress.
The statement indicated that Collins would address the charges later on Wednesday.
The Department of Justice released a statement that said the indictment is related to an Australian biotechnology company, Innate Immunotherapeutics. They avoided losing $768,000, according to the indictment.
Collins, who was first elected in 2012, threw his support behind Trump in February 2016, becoming the first Congressional Republican to endorse the future president.
The firm's stock plunged by more than 92% after it was revealed that a multiple sclerosis drug it was developing had failed trials.
All along, Collins denied any wrongdoing. We are confident he will be completely vindicated and exonerated.
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. When the House's ethics committee began investigating the stock trades a year ago, his spokesperson called it a "partisan witch hunt".