US Republican congressman Chris Collins charged for insider trading
https://www.abc.net.au/news/2018-08-09/new-york-congressman-chris-collins-charged-for-insider-trading/10091908
US prosecutors have charged Republican congressman Chris Collins for insider trading relating to a drug trial at an Australian pharmaceutical company on whose board he served.
Key points:
Insider tips led to trades which helped avert $1 million in losses
Chris Collins held 17 per cent stake in Innate Immunotherapeutics
Collins removed from House Energy and Commerce Committee
The indictment also charged Mr Collins' son Cameron, as well as Stephen Zarsky, the father of Cameron Collins' fiancee.
According to the indictment, Chris Collins sat on the board of North Melbourne-based Innate Immunotherapeutics and held a 16.8 per cent stake in the company.
The indictment said the congressman passed on non-public tips about Innate's trial for a drug to treat progressive multiple sclerosis to his son, who then passed the tips to Mr Zarsky.
Cameron Collins, Mr Zarsky and a number of others who they passed the tips on to traded on the information, and avoided more than $US768,000 ($1.03 million) in losses by selling before results of the trial, which ultimately failed, became public, the indictment said.
The company's stock went on to fall by more than 90 per cent.