WASHINGTON, D.C. (WIVB)–Settlements with former Congressman Chris Collins, son Cameron Collins, and Stephen Zarsky in the insider trading case against them have been reached, according to the SEC.
The settlement bars Collins from serving as an officer or director of a public company and requires Cameron and Zarsky to give up the losses they avoided as a result of insider trading.
According to the SEC complaint, Collins tipped Cameron, who tipped others to non-public negative trial results for a multiple sclerosis drug developed by Innate Immunotherapeutics, Ltd.
Collins, as an independent director on Innate’s board, learned these results from the company’s CEO and spoke to his son, who traded the information and tipped others, including his then girlfriend’s father Stephen Zarsky.
Together Zarsky and Cameron sold nearly 1.7 million Innate shares before the public announcement of the negative results. The SEC this move allowed them to avoid combined losses of more than $700,000.
Cameron Collins will give up $634,299, and Zarsky will give up $159,880.
SEC says the settlements are subject to approval in the U.S. District Court for the Southern District of New York.