brand new York GOP Rep. Chris Collins pleads not guilty to insider trading

The indictment reveals which the results through a more than three-year-long clinical trial for Innate’s primary multiple sclerosis drug were passed to the company’s board members on June 22, 2017. The trial, Innate CEO Simon Wilkinson told the board in an email, was a failure.

“I have bad news to report,” Wilkinson wrote, explaining the “clinical failure” of the trial. The company’s stock cost “was tied to the success” of the drug, the indictment says.

Collins was attending a congressional picnic at the White House at the time he received the email. He replied: “Wow. Makes no sense. How are these results even possible???”

The Republican representative held about 16.8 percent of Innate’s stock, generating him one of the company’s largest shareholders, according to the indictment.

About a minute after responding to the email, Collins called his son twice, however was not able to get through. Cameron Collins called him back three more times, apparently to no avail, as well.

On his fourth attempt, Collins connected with his son along with spoke for just over six minutes, explaining which Innate’s drug trial had failed.

The next morning, Cameron Collins sold more than 16,500 shares of Innate, along with placed numerous subsequent orders to sell stock before the company issued its press Discharge on the night of June 26, the indictment says.

In total, Cameron Collins allegedly sold nearly 1.4 million shares through his 2.3 percent stake in Innate before the company announced the results of the drug trial, saving him about $570,900 in potential losses.

from the next trading session after the failed drug trial was revealed to the public, the company’s stock plummeted more than 92 percent.

— CNBC’s
Dan Mangan
along with
Tucker Higgins
contributed to which report.

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