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Former Congressman Chris Collins settles insider trading charges with SEC

As part of his settlement, Chris Collins is barred from serving as an officer or director of a public company.

BUFFALO, N.Y. — Former Congressman Chris Collins, his son Cameron Collins and Stephen Zarsky have settled their insider trading charges with the Securities and Exchange Commission. 

As part of his civil case settlement, Chris Collins is barred from serving as an officer or director of a public company

Chris Collins' son, Cameron and Zarsky must "disgorge the losses they avoided as a result of their insider trading."

Investigators say Chris Collins tipped off his son, who then tipped others, to non-public information about an MS drug developed by a Australian Company, where Chris Collins sat on the board. 

Cameron Collins and Stephen Zarsky sold nearly 1.7 million Innate stock prior to the results of the drug going public avoiding combined losses of more than $700,000.

“Insider trading undermines investor confidence in the fairness and integrity of the securities markets,” said Stephanie Avakian, Co-Director of the Enforcement Division in a released statement. “Today’s settlements, along with the previous criminal pleas, should deter others who may be tempted to engage in this pernicious conduct.”

The settlements still have to be approved by the courts.  Chris Collins will be sentenced in the federal criminal case in January. 

RELATED: Former Congressman Chris Collins is now a Florida resident

RELATED: Chris Collins' son pleads guilty to conspiracy

RELATED: Former Congressman Chris Collins pleads guilty to charges connected to insider trading

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