US politician resigns from congress over insider trading allegations involving Australian company
Australia’s corporate regulator provided information to the US that helped build a case for insider trading against a disgraced Republican politician, it’s been revealed.
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A US politician has pleaded guilty to insider trading involving an Australian company, a day after he resigned from Congress.
And it comes as its revealed the Australian Securities and Investments Commission (ASIC) aided in the case against the staunch Donald Trump supporter.
Disgraced Republican Chris Collins from upstate New York had initially denied charges he leaked confidential information about Innate Immunotherapeutics and was set to go to trial next year in federal court in Manhattan.
But on Monday, the Republican from western New York withdrew his not guilty plea and resigned from Congress.
The 69-year-old was the company’s largest shareholder and sat on its board
During his guilty plea to securities fraud conspiracy and making false statements to the FBI, Collins told the judge that he was “embarrassed and dismayed” that he betrayed the trust of his constituents.
He called it “something I’ll have to live with for the rest of my life.”
The court heard Mr Collins called his son, Cameron Collins, with an inside stock tip after the company failed a key drug trial.
The son dumped his stock and passed the news to co-defendant Stephen Zarsky, leading him to sell off his shares too.
The trio faced a slew of fraud, wire fraud, securities fraud and related charges.
The Guardian today reports ASIC provided data about trading in Innate, and other supporting information, to the US Securities and Exchange Commission and the Federal Bureau of Investigation.
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Chris Collins submitted a letter of resignation to House Speaker Nancy Pelosi on Monday.
Collins also presented a letter of resignation to New York Governor Andrew Cuomo, in which he states he’s immediately stepping down from office.
“I hereby submit my resignation effective immediately, September 30, 2019, as United States Representative of the 27th District of New York,” reads the letter, which is written on embossed congressional letterhead.
Cameron Collins and Stephen Zarsky are expected to plead guilty tomorrow.
The company, which has been contacted for comment, has changed its name to Amplia Therapeutics and is now working on cancer and fibrosis treatments.
Originally published as US politician resigns from congress over insider trading allegations involving Australian company