Martha Stewart, Chris Collins, SEC discussed on Bloomberg Opinion
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 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. Wack so who had just learned that the drug urban talks had failed FDA test at least temporarily broker who would Martha? Stewart broker? Itself And so when the broker discovered that the tests had failed and that 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 cook fan but told her about it So I, mean if you're in the. SEC that's about as easy an insider trading case the nail as their and van 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 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 is 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 Doc What's 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 unload her stock and future, father-in-law unload dock the, future mother-in-law and low turn. Back I mean that chain that mean SEC could do that blindfolded It's, about as, easy thing to nail as there is and he. Was also under investigation wasn't 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? Actually had lost his I, believe he had lost his you know whatever subcommittee chairmanship he had had because of this so he was already in trouble yes and then the son sold one point three million shares, and nother 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 on. She. Was very poorly prepared she didn't. Go in with a lawyer she, thought you, 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 I mean he's pretty Republicans are vulnerable anyway And you know 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 the the thing that I? Found both, appalling and amusing about this story Is how dumb you gotta be, who to do. An inside a trade like this I mean sandy Weill this is a long time ago but sandy, wiles wife, was seeing a psychiatrist, at a time when sandy Weill was doing a bunch of deals And the cocker has a relationship with a patient that's a very private. Thing I hope cut, and of course of the therapy. Sandy Wilde's wife told him the psychiatrist about some deals that sandy was doing because that was on your mind And the psychiatrists went and traded on that information And he got caught by, the SEC if they could get something like that then quick. 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 walks so was sophisticated wasn't he Yeah but I mean 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 the reason I wrote a column list because you would think that anybody who is old, enough to have read about and lips 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.