Chris Collins' Phone Call That Ended His Career

Chris Collins was a sitting U.S. Congressman when he became the first to be indicted for insider trading while in office. The case centered on a small biotech called Innate Immunotherapeutics, an Australian firm trying to bring a multiple sclerosis drug to market.

Collins was one of the company's largest shareholders. He also sat on its board. In June 2017, while attending a congressional picnic at the White House, Collins received an email with devastating news: the drug trial had failed. Instead of waiting for the information to be made public, Collins immediately phoned his son. Phone records showed repeated attempts until the two connected. His son then began unloading shares and tipped others, allowing family and associates to avoid losses exceeding $750,000.

The stock collapsed as soon as the trial results were disclosed. Losses were heavy for ordinary shareholders who didn't have access to the non-public information. Prosecutors said Collins used his position to gain an illegal advantage, undermining market fairness.

The Department of Justice charged Collins with conspiracy, securities fraud, and making false statements to the FBI. In 2019, Collins pleaded guilty to one count of conspiracy to commit securities fraud and one count of lying to federal agents. He resigned from Congress the same day.

Sentencing followed in January 2020. Collins received 26 months in federal prison, later reduced after a pardon from President Donald Trump in December 2020. By then, his political career was over and his reputation destroyed.

The case highlighted a broader issue: congressional access to sensitive, market-moving information. Collins was a high-profile example of what critics call a loophole-ridden system where lawmakers and their families trade stocks in industries they oversee. Calls to ban members of Congress from owning individual stocks grew louder in the aftermath.

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