NY Republican Chris Collins Arrested for Fraud

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Posted: Aug 08, 2018 9:42 AM
NY Republican Chris Collins Arrested for Fraud

UPDATE: Rep. Collins has released a new statement on his arrest.

UPDATE: Rep. Collins pleaded not guilty at his arraignment hearing in lower Manhattan Wednesday. The judge set a $500,000 bond for the congressman. Collins also reportedly has no plans to resign.

UPDATE: House Speaker Paul Ryan has booted Collins out of the House Energy and Commerce Committee.

“Insider trading is a clear violation of the public trust," Ryan said in a statement. "Until this matter is settled, Rep. Collins will no longer be serving on the House Energy and Commerce Committee.”

UPDATE: Federal prosecutors in New York detailed the charges against Rep. Collins during a press conference on Wednesday. When Collins was a board member for the pharmaceutical company Innate, U.S. attorney Geoffrey Berman explained, he found out that the company's main drug was a “total failure.” It was devastating news that Collins was obligated to keep secret until it went public. However, "putting family and friends above the public good," the congressman tipped off his son Cameron with the news, after which Cameron sold his shares, as did a few others. By doing so, they avoided losing over $750,000.

ORIGINAL POST

Rep. Chris Collins, a Republican representative from New York, has been arrested by the FBI for securities fraud and wire fraud. He is also accused of lying to FBI.

Collins was taken into custody in Manhattan. A press conference is scheduled for noon on Wednesday. 

In the 22-page civil complaint, Collins, his son Cameron, and Stephen Zarsky, the father of Cameron's fiancee, are accused of insider trading. Collins reportedly used information from negative clinical trial tests conducted by a pharmaceutical company named Innate. He served on Innate's board of directors.

Last year, the House ethics committee launched an investigation into Collins's potential violations of federal law and House rules related to insider trading.

This is a breaking news story and will be updated as information becomes available.