U.S. congressman charged in insider trading scandal

first_img U.S. authorities have charged a congressman, his son and the father of his son’s fiancée for alleged insider trading ahead of the release of negative news at a company at which the congressman served as a director.Republican congressman Christopher Collins of New York was charged in federal court on Wednesday with 13 counts of securities fraud, wire fraud, conspiracy and lying to federal agents. Collins, his son, Cameron, and Stephen Zarsky, the father of his son’s fiancée were arrested and charged in connection with an alleged insider trading conspiracy involving Australia-based biotech firm, Innate Immunotherapeutics Ltd., at which Collins sat on the board. According to the indictment, Collins passed along information about disappointing drug trial results before they were released publicly in 2017, enabling his son, Cameron, and Zarsky, to trade ahead of the news. As a result of their advance knowledge of adverse drug trial results, they avoided approximately US$768,000 in losses, authorities allege. They also are accused of making false statements to investigators designed to cover up their participation in the alleged scheme.None of the allegations have been proven. They are scheduled to be arraigned in Manhattan federal court on Wednesday afternoon.In addition to the criminal charges, the trio also were charged by the U.S. Securities and Exchange Commission (SEC).The SEC’s complaint, which was also filed in U.S. District Court for the Southern District of New York, seeks disgorgement of ill-gotten gains plus interest, penalties, and permanent injunctions, and an officer and director ban against Collins.The SEC also announced settled charges against Cameron’s fiancée, Lauren Zarsky, and her mother, Dorothy Zarsky, for trading on the information. Without admitting or denying the charges, they agreed to disgorge their ill-gotten gains of more than US$40,000, plus prejudgment interest and to pay civil penalties.Lauren Zarsky, an accountant, also agreed to be suspended from practising before the SEC for five years. Judge gavel, scales of justice and law books in court flynt/123RF FINRA bans analyst for insider trading Related news James Langton SEC alleges man sold insider trading tips on dark web Share this article and your comments with peers on social media Keywords Insider tradingCompanies Securities and Exchange Commission ASIC ready to make deals with devils Facebook LinkedIn Twitterlast_img read more

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