Rep. Chris Collins (R-NY) is abandoning his 2018 re-election campaign, amid insider trading allegations and a federal indictment earlier this week.
Collins is said to have passed nonpublic information he received regarding a failed drug trial by Australian biotech company Innate Immunotherapeutics to his son last year, before Innate announced the news publicly.
Collins’ son, Cameron, subsequently dumped all of his shares of the company. One day later, the company announced the results of that failed trial, prompting its stock price to drop 90 percent, to 4 cents per share.
Cameron Collins, as well as several others, were able to “[avoid] a total of approximately $768,000 in losses” as a result of that insider information, according to federal prosecutors.
Collins, his son, and one other man were indicted earlier this week by federal prosecutors in the Southern District of New York on 13 counts of securities fraud, wire fraud, and making false statements to authorities.
On Saturday, Collins issued a statement, saying he would suspend his re-election bid in the wake of that indictment.
“Democrats are laser focused on taking back the House, electing Nancy Pelosi Speaker and then launching impeachment proceedings against President Trump…something that neither our country or my party can afford,” he wrote. “After extensive discussions with my family and my friends over the last few days, I have decided that it is in the best interests of the constituents of NY-27, the Republican Party and President Trump’s agenda for me to suspend my campaign for re-election to Congress. ”
Collins said he would “fill out the remaining few months of my term to assure that our community maintains its vote in Congress.”
This story is developing and will be updated.
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