Trump’s "man on the Hill" arrested by Federal Bureau of Investigation on securities fraud charges

Trump’s

Trump’s "man on the Hill" arrested by Federal Bureau of Investigation on securities fraud charges

The congressman's son, Cameron, and Stephen Zarsky, the father of Cameron's fiancee, were also charged in the scheme.

Collins, a Republican from NY, served on the board of an Australian biotechnology company called Innate Immunotherapeutics, and was also the company's largest shareholder.

The Justice Department indictment released Wednesday alleges that while Collins served on the board of the company, he passed inside information to his son after the company's main drug failed a trial.

"Congressman Collins cheated our markets and our justice system", said Geoff Berman, the interim U.S. Attorney for the Southern District of NY. "We are confident he will be completely vindicated and exonerated".

"Congressman Collins - who by virtue of his office helps to write the laws of our nation - acted as if the law didn't apply to him", said Geoff Berman, U.S attorney for the Southern District of NY, at a press conference.

The lawyers said Collins will say more on the indictment later on Wednesday.

A USA congressman has been accused of using inside information to make illicit stock trades.

Just a few months later in June of 2017 came news of the failed drug trial, and the plunge in the share value of Innate. Zarsky is also said to have made trades.

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Last August, the House Ethics Committee took up an inquiry into Collins and allegations that he had shared nonpublic information about the company, in violation of House rules, standards of conduct, and federal law.

Collins found out about the failed drug trial before it became public - getting an email about the results while attending the congressional picnic at the White House previous year, the indictment alleges. "Federal prosecutors said Collins tipped his son to the failure of a test drug for multiple sclerosis", he writes.

The arrest of a sitting Congressman facing re-election in November may have implications for Rep. Chris Collins, R-N.Y.

Collins has denied any wrongdoing. Shares dropped 92% after the announcement.

He then allegedly called Cameron Collins seven times, after which his son began selling large amounts of Innate stock until 26 June.

Attorneys for Mr Collins said in a statement that they will "mount a vigorous defence to clear his good name".

Collins' trades in Innate Immunotherapeutics had already been the subject of a House ethics probe.

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