Ex-US Rep. Christopher Collins Pleads Guilty in Insider Trading Case

Former U.S. Rep. Christopher Collins, R-New York, pleaded guilty Tuesday to conspiracy and making false statements in an insider trading scheme involving the Australian biotechnology firm where he served as a director for more than a decade.

Collins, who announced Monday that he would resign his seat in the U.S. House of Representatives, admitted in Manhattan federal court to telling his son, Cameron, to sell his stock in Innate Immunotherapeutics after a promising multiple sclerosis drug failed a key trial. He later lied to investigators about his role and that of his son, he said.

Collins said he was “in a very emotional state” at the time and did not remember exactly what he said to his son, but he “made it clear” that if Cameron were to dump his stock, he would be able to avoid significant losses when news of the failed trial broke a few days later.

In total, prosecutors alleged, Collin’s tip allowed his family members to avoid about $768,000 in losses.

“I don’t think regret is the proper word,” Collins told U.S. District Judge Vernon S. Broderick. “[It’s] something I’ll live with the rest of my life.”

Collins did not take questions from reporters or deliver a public statement after leaving the federal courthouse. His sentencing was scheduled for Jan. 17.

The hearing came just one day after Collins, a four-term congressman, announced that he was changing his “not guilty” plea ahead of a trial that was scheduled to begin in February. Cameron Collins, and his fiancée’s father, are both expected to plead guilty on Thursday.

Collins, 69, refused to drop his reelection bid for Congress in 2020 after pleading not guilty last month to a superseding indictment in the case, saying that he planned to make a decision on his political future later in the year.

On Tuesday, Collins said he signed a written plea agreement with prosecutors Sept. 24, in which he agreed to plead to charges of conspiracy to commit securities fraud and lying to investigators. The agreement, which is not binding on Broderick, included sentencing guidelines of between 46 and 57 months in prison. He also faces fines of up to $250,000 on each count.

The government said it is not seeking any forfeiture or restitution in the case.

U.S. Attorney Geoffrey S. Berman, who attended Tuesday’s hearing, said the conviction of a former U.S. congressman was proof that no one was above the law.

“By virtue of his office, Christopher Collins helped write the laws of this country, but he acted as if the law did not apply to him,” Berman said in a statement.

Collins said he was “dismayed and embarrassed,” but added that he had to “take responsibility and own up” to what he’d done.

“I regret my actions, I’m sorry for the devastation I caused my wife and family,” he said.

Collins’ resignation from Congress became official on Tuesday, when his letter was read on the House floor.

The Buffalo-area ex-lawmaker was one of the earliest congressional supporters of President Donald Trump.

Collins’ defense counsel was Jonathan Brian New of Baker & Hostetler.