Ex-congressman Chris Collins to be
sentenced in New York for insider trading
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[January 17, 2020]
NEW
YORK (Reuters) - Chris Collins, a former U.S. Congressman from New York
who was an early backer of President Donald Trump, is due to be
sentenced on Friday after pleading guilty to taking part in an insider
trading scheme. |
Chris Collins, former U.S. Representative for New York's 27th
congressional district departs after pleading guilty at Federal Court in
New York City, New York, U.S., October 1, 2019. REUTERS/Lucas Jackson |
Collins, 69, pleaded guilty to charges of conspiracy and making
false statements in October in federal court in Manhattan, a day
after resigning his seat in the U.S. House of Representatives.
Although he faces a maximum of five years in prison for each of
the two charges, prosecutors have agreed as part of a plea deal
that a reasonable sentence would be a total of less than five
years.
A few months after he was criminally charged in 2018, Collins
had narrowly won re-election to the 27th Congressional District
in western New York.
He was convicted for trading on insider information while a
board member and a 16.8% stakeholder of Australian biotechnology
company Innate Immunotherapeutics Ltd.
After learning from an email sent by the company's chief
executive that an experimental multiple sclerosis drug had
failed a clinical trial, Collins relayed the news to his son,
allowing him to sell shares before the news became public and
eroded their value. His son also passed the tip on to others.
(Reporting by Jonathan Allen; Editing by Daniel Wallis)
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