Martha Stewart, Chris Collins, Bloomberg discussed on Bloomberg Opinion


Washington has become a terrible habitat for endangered species but first Chris Collins a Republican congressman from New York and his son were arrested and, indicted, for insider trading relating to the shares of an Australian biotech firm Tallinn's is accused. Of tipping off his son about negative results in. A clinical, trial for drug being developed by innate, immune therapeutics Bloomberg opinion columnist Joe Nocera observes that the indictment seems awfully familiar to what happened to Martha Stewart and he's here. To tell us. More about it So remind us of how the charges against, Martha Stewart came about well it was pretty simple The broker for the CEO of ImClone Sam wacko who just learned. That the drug urban talks had failed FDA at least temporarily broker who was Martha Stewart's broker, and so when the broker discovered that the test had failed in that family starring from stock he turned around and called Martha who was a friend of. Fans and who was in the stock because he had heard about? Family, told her about it So I, mean if you're in the SEC that's about it easy an insider trading case to mail as their and then along comes Chris Collins right here we are years. Later and here's a congressman who has a history as a sophisticated businessman and investor I mean, this is not some greenhorn he's invested in a lot of startups and he's been an angel investor and so he's on the board of this Australian company And he has told a bunch of other, congressman about it and they've invested including by the way Tom Price who was Trump's first secretary. Of health, and human services and he. Told his son and his. Son told his, fiancee and his future in-laws and they all, bought, the Faulk what's the drug the Australian companies. Drug failed and Collins tells his son literally, a phone call six, seconds after he discovers that the drug failed and the sun to unload his. Dock and, the day starts unload her. Stock and the future will unload dock the future mother-in-law doc I mean. That chain that me nasty she could do that blindfolded That's about as easy thing thank the nail as there. And he was also under investigation wasn't for ethics violations yes he was you know, even before this I mean he was accused of? Using his position to help, this company and getting people, in the stock is going up absolutely and he actually had lost his I believe he had lost his you, know whatever subcommittee chairmanship he had had because of this though he was already thought, of in. Trouble yes and then the son sold. One point three million shares Yeah Similarity to the Stuart, case is that what are the charges is that they lied to the? FBI That's absolutely right that is. Actually why Martha Stewart went to. Jail that's what they got gotta on she was very poorly prepared. She didn't go in, with lawyer she thought she could just wing it and and they killed her and in this case I. Think, they're alleging that Chris Collins, and his son simply lied, about, what transpired. On that phone call obviously, they didn't have it bug but the timing is very very very suspicious Now he. Resigned right after the, charges came out that night he said he was going to fight the charges right then after thinking about. It for a weekend he decided, that he was not going, to, run well What are you what you know what would you expect them, to do I mean he's pretty Republicans are vulnerable anyway This hanging over his head, he's particularly, vulnerable and I think he could just probably envision the what the ad campaign against him would. Be like you know the thing, about it is the thing that I? Found both, appalling and amusing about this story It's how dumb you. Gotta be who, to do an insider trade like this I mean sandy Weill this is a long time ago but, sandy wiles, wife with seeing a psychiatrist at a time with sandy Weill was doing a bunch of deals And has the relationship with a patient that's a very private thing. I hope and in. The course of the therapy sandy, Wilde's wife told him the psychiatrist about some deal that sandy was doing because obviously that was on your mind And the psychiatrist went and traded on that information And he got caught by the SEC If they could catch something like that then Chris Collins and. Cameron Collins, and the fiance father-in-law mother-in-law that's like, that's the easiest thing in the world But walk so was sophisticated wasn't he Yeah, but I, mean yes he, was just. You know I, like them I like him personally so I. Talked us up to a moment of utter panic and, you know foolishness so, maybe the same thing happened in the Collins case maybe maybe maybe I the reason I wrote the column list because you would think that anybody who is, old enough to have read about and live through the Martha Stewart trial which was on the front pages for weeks at, a time, would have would have taken away from, that tribal lesson of you know if you're gonna be. An, insider trader at, least, at least at, least try, to hide it The FBI when they catch you don't lie to the, FBI when, I get you that that's exactly right, they always know more than you do at that point Sure. Do Thanks Joe that's Jonas Sarah a Bloomberg. Opinion columnist coming up on Bloomberg at the union why American workers shouldn't be..

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