The SEC announced settlements with former U.S. Rep. Christopher Collins, his son Cameron Collins, and Stephen Zarsky, all of whom were charged with insider trading and pleaded guilty to related criminal charges. The settlements, which are subject to court approval, bar Christopher Collins from serving as an officer or director of a public company and require Cameron Collins and Stephen Zarsky to disgorge the losses they avoided as a result of their insider trading.
According to the SEC’s complaint, Christopher Collins tipped his son, who then tipped others to non-public negative trial results for a multiple sclerosis drug developed by Australian biotech company Innate Immunotherapeutics Ltd. The complaint alleged that Christopher Collins, then an independent director on Innate’s board, learned of the results from Innate’s CEO and then spoke to his son Cameron Collins, who traded on the information and tipped others, including his then-girlfriend’s father, Stephen Zarsky. Cameron Collins and Stephen Zarsky together sold nearly 1.7 million Innate shares in advance of Innate’s public announcement of the negative results, avoiding combined losses of more than $700,000.
Source: The Securities Law Blog: Former Congressman and Two Others Settle Insider Trading Charges
