Chris Collins, Martha Stewart, Bloomberg discussed on KZL Programming
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 related to the shares of an Australian biotech firm Collins is accused of. Tipping off his son about negative results in a clinical, trial for a 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 reminds 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 have just learned that the drug. Urban talks had failed FDA test at least temporarily same broker who was Margaret, Stewart poker itself and so when the broker discovered that the test. Had, failed in that family From stock he turned around and called Martha who was a friend of fans and who. Was in the stock because she 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 nail, as there 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 come greenhorn 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 has come, 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 the drug Australian, companies drug failed and, Collins tells his son literally and a phone call six seconds after he discovers. That the, drug failed and the sun to unload his stock at the Piazza starts to unload her stock. And the future unload his dock the future mother-in-law motor Doc I mean that chain SEC could do that blindfolded That's about as easy thing to. Mail as there and he? Was, also under. Investigation wasn't, he 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 had 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 sort. Of in, trouble yes and then the son sold one point three million shares another similarity to the Stuart case is that one of. The charges is that they lied to the FBI Yes that's absolutely right that is actually why Martha Stewart went to jail that's what got. Her. On she was very poorly prepared she. Didn't go in with a 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 what you know what would you expect, them to do that he's pretty Republicans are vulnerable anyway And this hanging over his head he's particularly vulnerable, and I, think he could just. Probably visited the what the ad campaign against them would be like, you, know the thing, about it the thing that I found both appalling and amusing about this story Is 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 when sandy Weill was doing a bunch of deals And had the relationship with the patient that's a. Very private thing I. Hope and of course the therapy, sandy Wilde's wife told him the psychiatrist about some deals 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 quick Collins and. Cameron Collins, in the fiance father-in-law mother-in-law that's like, that's the easiest thing in the world Walk so was sophisticated wasn't he Yeah but I, mean he, was and and just. You know I, like them I like him personally so. I chalk this 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 lived through the Martha Stewart trial which was on the front pages for weeks, at a, time would have would have taken away, from that travel 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, they get to that that's exactly right, they always know more than you do at that point Sure. Do Thanks Joe that's Joe Nocera a Bloomberg. Opinion columnist coming up on Bloomberg at the union.