Chris Collins, Martha Stewart, Bloomberg discussed on Bloomberg Opinion

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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 Collins is, accused of tipping off his son about negative results in a clinical trial for a, drug being developed by innate immune a 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 had just learned that. The drug urban talks had failed FDA test at least temporarily broker who was Martha, Stewart's broker and so when the broker discovered that the test had failed and family selling stock he turned around and called Martha who was a. Friend of fans and who was in the stock because she had? Heard, about told about it So I mean if you're, in the SEC that's about as easy an insider trading case to nail at 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 and 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 has come to, US 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 stock once the drug the 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, dock and the fiance start to unload her stock and future father-in-law unload dock the future mother-in-law her back. I mean that chain that SEC could do that blindfolded That's about as easy thing to nail 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 was 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 and 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. They gotta rod 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 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 I mean he's pretty Republicans are vulnerable anyway And with this hanging over his head he's particularly, vulnerable and, I think he could just probably envision the what the ad campaign against them 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. To to do an insider trade like this I mean sandy Weill this is long time ago but, sandy Weill, wife was seeing a psychiatrist at a time when sandy Weill was doing a bunch of deals And Chris has the relationship with the patient that's a very private. Thing I hope and, of course in the therapy, sandy Wilde's wife told him the psychiatrist about some deal 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 the 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. Talk 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 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 going to 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 opinion why American workers shouldn't be. Dismayed at stagnating wages I'm shooting also this is Bloomberg.

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