Politics

GOP Rep. Chris Collins Resigns Amid Insider Trading Scandal

(Spencer Platt/Getty Images)

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Andrew Kerr Investigative Reporter

Four-term Republican Rep. Chris Collins of New York submitted his resignation from Congress Monday, one day before he’s expected to plead guilty to charges of insider trading.

House Speaker Nancy Pelosi “is in receipt of a letter of resignation” from Collins, which will be made effective Tuesday morning when it’s brought to the floor of the House, her spokesman Drew Hammill told CNBC.

Collins was indicted in August for using his board position at Innate Immunotherapeutics, an Australian-based pharmaceutical company, to tip his son off that the company’s primary drug, a treatment for a form of multiple sclerosis, had failed its drug trial before the information was made public.

Shares in Innate fell by 92% after news of the failed drug trial became public. But being privy to insider information from his father, Cameron Collins and the father of his fiancée, Stephen Zarsky, were able to offload their shares in the company and avoided over $768,000 in losses “that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public,” the indictment stated.

NEW YORK, NY - AUGUST 08: Rep. Chris Collins (R-NY) walks out of a New York court house after being charged with insider trading on August 8, 2018 in New York City. Federal prosecutors have charged Collins, one of President Trump's earliest congressional supporters, with securities fraud, accusing the congressman and his son of using inside information about a biotechnology company to make illicit stock trades. (Photo by Spencer Platt/Getty Images)

Rep. Chris Collins walks out of court house after being charged with insider trading on Aug. 8, 2018. (Spencer Platt/Getty Images)

Collins had initially entered a not guilty plea in September following his indictment, but on Monday a “change of plea hearing” was filed in his case, indicating that he’s likely had a change of heart and will plead guilty to the charges when the hearing is held Tuesday. (RELATED: GOP Congressman Expected To Plead Guilty To Insider Trading)

Collins was the first member of Congress to publicly endorse Donald Trump’s presidential campaign in 2016.

Collins’s office did not immediately return a request for comment from the Daily Caller News Foundation.

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