Former U.S. Congressman Sentenced to 26 Months for Insider Trading
Reuters reports that Chris Collins, a former U.S. congressman from New York who was an early backer of President Donald Trump, was sentenced to 26 months in prison and fined $200,000 on Friday after pleading guilty to taking part in an insider trading scheme.
Collins, who resigned from Congress after being found guilty, was convicted of trading on insider information while a board member and 16.8% stakeholder of Australian biotechnology company Innate Immunotherapeutics Ltd.
Reuters’ Jonathan Allen explains Collins’ crime:
“After learning from an email sent by Innate Immunotherapeutics’ chief executive that an experimental multiple sclerosis drug had failed a clinical trial, Collins relayed the news to his son, enabling the son to sell shares before the news became public and eroded their value.”