The Securities and Exchange Commission has reached a settlement with former U.S. Rep. Christopher Collins, in connection with an insider-trading case involving his son and an Australian biotechnology company.
Mr. Collins has agreed to be permanently barred from acting as an officer or director of any public company, the SEC said Monday. His son, Cameron Collins, and Stephen Zarsky have agreed to pay back the losses they had avoided in an insider-trading scheme, totaling more than $700,000.
Prosecutors and the SEC had accused Mr. Collins of passing a confidential tip to his son so he could sell shares in the biotechnology company Innate Immunotherapeutics Ltd. before the public disclosure of a failed drug trial.
A lawyer for Mr. Collins couldn’t be immediately reached for comment.
Mr. Collins, his son and Mr. Zarsky were charged with insider trading and pleaded guilty in October to criminal charges. Ahead of his guilty plea, Mr. Collins, who represented New York’s 27th Congressional District, resigned from his position in September.
Mr. Collins is scheduled to be sentenced in Manhattan federal court next month.
“Insider trading undermines investor confidence in the fairness and integrity of the securities markets,” said Stephanie Avakian, co-director of the SEC’s Enforcement Division. “Today’s settlements, along with the previous criminal pleas, should deter others who may be tempted to engage in this pernicious conduct.”
“Mr. Zarsky has resolved the matter with the SEC in order to begin resolving matters with the government,” said Mauro Wolfe, lead counsel for Mr. Zarsky and lawyer at Duane Morris LLP.
A lawyer for Cameron Collins couldn’t be reached.