A GOP congressman from NY is arrested and facing charges related to insider trading.
Also charged is Collins's son, Cameron Collins, and the father of Cameron's fiancee, Stephen Zarsky.
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Collins was already under investigation at the time by the Office of Congressional Ethics for his dealing with Innate, and did not sell off his own stock in the company, according to the indictment.
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Successful completion of the trial was necessary for commercialization of the production in the USA, which was meant to treat secondary progressive multiple sclerosis, a stage of the disease that indicates the patient's condition is worsening despite treatment.
The congressman, through his attorneys, denied any wrongdoing.
Collins' latest sale of Innate Immunotherapeutics holdings was on June 20, 2018 and valued between $15,000 and $50,000 according to House periodic transaction reports.
A spokesman for the U.S. Attorney's office for the Southern District of New York in New York City says the congressman surrendered to authorities and is under arrest.
Lawyers for Collins released a statement expressing confidence he would be "completely vindicated and exonerated".
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They added: "It is notable that even the government does not allege that Congressman Collins traded a single share of Innate Therapeutics stock".
Collins gained prominence for being one of the earliest Capitol Hill backers of President Donald Trump. When the House's ethics committee began investigating the stock trades a year ago, his spokesperson called it a "partisan witch hunt".
Collins, 68, is set to appear in Manhattan federal court Wednesday afternoon.
That allowed them, prosecutors allege, to avoid more than $768,000 in losses they would have incurred if they had traded the stock after the drug trial results became public.
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