congressman collins cheated our markets and our justice system in two ways. first, he tipped his son to confidential corporate information at the expense of regular investors, and then he lied about it to law enforcement to cover it up. also charged is his son, cameron collins, and steven czarsky, the father of cameron s fiance. these charges are a reminder that this is a nation of laws and that everybody stands equal before the bar of justice. now i d like to go into the details of the allegations a little more. in addition to serving in the house of representatives, congressman collins was also on the board of directors of innate
when the public trial for the drug was about to be announced as a failure. want to read a little from the complaint. mis 416 had the potential to be an enormously profitable if the drug trial was successful. the drug, however, failed the drug trial. public announcement of these results caused the stock price to drop by 92%. in or about june of 2017, christopher collins violated the duties he owed to innate by passing material nonpublic information regarding the drug trial results to his son the defendant so that cameron collins could use that information to make timely trades in innate stock and tip others. in detail, it was stunning from the actual complaint itself, those phone calls or the initial ones from the congressman to his sn, they took place on the grounds of the white house, during the white house congressional picnic. anybody who has been paying attention to chris collins on capitol hill the last couple of years it was no secret his role in this company, his belief in this
prior to the market close of june 26. after the market closes, innate announces to the public that its drug had failed the trial. and the next day, the drug price, the price of innate, falls off a cliff. it drops 92% in value in a single day. this was the drop that was anticipated by the co-conspirators. this was the drop in value that the co-conspirators avoided by selling their shares for the public announcement. and they could only sell those shares by virtue of the initial tip of inside information by congressman collins. a case of this type and significance, obviously, involves the s.e.c. and the fbi
thank you, geoff. good afternoon, everybody. u.s. representative christopher collins sat on innate s board of directors for a period of more than three years. spanning the run-up to the drug trial announcement in mid-2017. collins himself was the company s largest shareholder. in or about the summer of 2017, a drug designed to treat a debilitating form of multiple sclerosis had entered the late stages of a phase 2b clinical trial. this drug, mis-416, was the only viable drug in the pipeline for innate. this is significant in that the company s value was nearly completely wrapped up in the success of the clinical trial and subsequent phase three trial. on the evening of june 22nd, 2017, collins received an e-mail informing him that mis-416 had failed its clinical trial.
immuno therapeutics, a publicly traded company that was developing a drug for multiple sclerosis. in june of 2017, congressman collins was told some confidential and highly sensitive information about innate. information that was not yet made public. namely, that innate s main drug, the drug innate was developing to be the backbone of its company, was a total failure. this was devastating information for the company. congressman collins had an obligation, a legal duty to keep that information secret until that information was released by the company to the public. but he didn t keep it secret. instead, as alleged, he decided to commit a crime.