Chris Collins, Martha Stewart, Congressman discussed on Biz 1190 Overnight
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 Remind us of how the, charges against Martha Stewart came about well pretty simple Be broker for the CEO of ImClone Sam wack so who had just learned, that the drug urban talks had failed FDA test at least temporarily same broker who would Martha? Stewart's, broker itself And so when the broker discovered that the test had failed, and that family stomach from stock he, turned around. And called Martha who was a friend of fan and who was in the stock because she had heard, about Obama 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 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 Invested in, a lot of start off 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 toll fiance and his, future in laws and they all bought the thought 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 a future father-in-law unload dock the future mother-in-law and low turn. Back I mean that chain SEC could do that blindfolded It'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 was going up, absolutely and he, had actually, had lost his I believe he, had lost his you know whatever subcommittee chairmanship had had because of this so he was already in trouble yes and then the son sold one point three million shares and another, 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 modest Stewart went to jail that's what they. Got. Rod she was very poorly prepared she. Didn't go in with a lawyer, she saw, chicken 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 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 And with this hanging over his head, he's particularly, vulnerable and I think. He could just probably visit the what the ad campaign against them would, be like you know the thing, about it the the thing that I? Found both, appalling and amusing about this story It's how dumb, you gotta be to to do an inside a trade like this I mean sandy Weill this 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 a relationship with a patient that's a very private thing I hope endure and of course of the therapy Wiles wife told him the psychiatrist. About some deals 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 They could catch something like that Then quick Collins and, Cameron columns. And the fiance. Father-in-law the mother-in-law that's like that, the easiest thing in the world Walks was sophisticated wasn't he Yeah but I mean yes, he was You know, I, like them Like him personally so I chalked 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 a 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, tribal lesson of you know if he's going, to be an insider trader at least at least at. Least try, to hide it You know The FBI when they. Catch, you yeah no light of, the you That's exactly right they always know more. Than, you do at that point Sure do Thanks Joe Jonas Sarah.