The New Gilded Age sure looks a lot like the first Gilded Age. The first congresscritter to endorse Trump is on the board of a publicly traded company and he uses it to engage in insider trading? Perfect! The designers of Credit Mobilier couldn’t ask for more!
Here’s what’s laid out in complaints from the Securities and Exchange Commission and the US Attorney for the Southern District of New York (Collins has pleaded not guilty):
Collins sits on the board of Innate Immunotherapeutics, an Australian biopharmaceutical company in which he is also the largest shareholder.
On June 22, 2017, Collins learned that Innate’s main drug had failed clinical trials, a grave outcome for Innate’s financial condition.
Literally seconds after learning this news, Collins contacted his son, Cameron, who at the time owned 2% of Innate.
Over the following four days, Cameron Collins and several other associates of the Collinses proceeded to liquidate their positions in Innate before the public announcement of the drug failure on June 26, after which the stock fell 92%. They saved approximately $750,000 by selling before the announcement.
Innate is not an especially large company. As a result, per the SEC: “The sales by Cameron Collins, his girlfriend, and her parents, including Stephen Zarsky, made up more than 53% of the stock’s trading volume [on June 23] and exceeded Innate’s 15-day average trading volume by more than 1,454%.”
How is Collins not in the Trump Cabinet?