By Ginny Kropf, correspondent Posted 3 October 2019 at 7:08 am
Photo by Ginny Kropf: Two families of friends turned out in full force last October to support the Knights-Kaderli Walk/Run at East Shelby Fire Hall. Gary and Karen Barber of Brockport, at left, and Jay and Julie Mersdorf of Webster pose with children Haley Mersdorf, 8; Kennedy Barber, 6; Paxton Barber, 2; Brooks Barber, 4; and Brett Mersdorf. The 31stannual Knights-Kaderli Walk/Run is this Saturday.
EAST SHELBY – This Saturday will mark the occasion of the 31st annual Knights-Kaderli 5K race to benefit those living with cancer in Orleans County.
The fundraiser originally started as separate events in memory of two lifelong residents of Orleans County – Richard Knights and Sue Scharping Kaderli.
In 1994, their families merged their memorial funds into the Knights-Kaderli Memorial Fund. It was the wish of both families that money raised be used to provide financial support to Orleans County cancer patients and their families. Funds have been used to assist families with prescriptions, medical supplies, transportation costs, nutritional supplements and bills.
Since its inception, the fund has assisted about 600 cancer patients and/or their families, and gives out about $60,000 annually to assist families. The 5K walk/run is a big fundraiser for Knights-Kaderli.
Richard Knights grew up in Knowlesville, a son of the late William Knights Jr. and Sarah Marion Cox Knights. He was also a stepson of Mary Balcerzak Knights. He graduated from Medina High School and attended Morrisville and Kent State universities. He was prominent in an extensive farming operation in the town of Ridgeway under the name of Knights Land Company. He was also owner of Knights Real Estate and a partner in Ridge Sand and Gravel and Orleans Trucking.
Richard spent a decade in a policy-making position with the Republican Party in Orleans County and was a longtime member of the Republican Committee in the town of Ridgeway. He was a member of the First Presbyterian Church of Medina, a former member of the Medina Jaycees, an active member of various farm groups and was president of the West Ridgeway Cemetery Association.
Sue Kaderli grew up in Orleans County, a daughter of the late Earl and Viola Clack Scharping. She graduated from Medina High School in 1955 and worked in the Orleans County area most of her life. She spent the last 15 years of her life as a clerk at Main Liquor Store in Medina.
She was a member of St. Mary’s Catholic Church and was a dedicated and loving mother to her four children. She is remembered as a very compassionate person, always there to talk with or lend a hand to those in need.
Sue’s family copes with her loss by helping others who are fighting cancer. It is their hope that Sue’s gift of compassion for helping other people will live on through the aid of this fund named in her memory.
The Knights-Kaderli 5K race will take place at East Shelby Fire Hall. Registration will begin at 9:30 a.m., with the race starting at 11 a.m. The public is invited to attend the event for lunch and to participate in a giant basket raffle.
Minimum registration fee to walk or run in the race is $20 and includes a T-shirt and lunch.
More information or sponsorship and donation opportunities are available by calling Mary Zelazny at (585) 746-8455; Stacey Knights Pellicano at (716) 998-0977 or Melissa Knights Bertrand at (716) 983-7932.
By Tom Rivers, Editor Posted 2 October 2019 at 9:17 pm
ALBION – The Orleans County Highway Department, which includes the Buildings and Grounds Department, will have its name dissolved and will become a Department of Public Works.
The County Legislature will have a public hearing on the change at 4:20 p.m. on Nov. 20. The county needs to adopt a local law to change the name of the department.
The proposal also includes changing the title of the highway superintendent to the superintendent of the Department of Public Works.
The Highway Department and Building and Grounds used to be separate with their own department heads. About a decade ago the Buildings and Grounds was moved to be under the Highway Department, under the direction of the highway superintendent.
The Legislature appointed a new highway superintendent on March 27, following the retirement of Jerry Gray. John Papponetti, the new highway leader, has suggested the Highway and Buildings and Grounds become a Department of Public Works.
That is how the highway staffs are known in the local villages. The towns in Orleans County all call them “Highway Departments.”
With the town highway departments, the superintendents are all elected. The DPW leaders are all appointed by the Village Boards. At the county level, the position is made by appointment of the County Legislature.
By Tom Rivers, Editor Posted 2 October 2019 at 4:00 pm
CLARENDON – A mini-mart at 4530 Holley-Byron Rd. will add an auto repair shop, a proposal that has the support of the Orleans County Planning Board.
The county board has recommended the Town of Clarendon approve a special use permit for Jeremy Van Ameron to operate the Van’s Auto Service on the rear side of the store, which includes a gas station.
Van Ameron will have separate parking for the auto repair shop. The hours for the repair shop will be 7 a.m. to 7 p.m. from Monday through Saturday.
The building currently has one bay door for vehicle access. Van Ameron plans to add two additional doors.
He is also buying the property from Vijay Gupta, who has been operating Twin’s Mini Mart at the location. Van Ameron will continue the store and gas station.
MEDINA – A Medina man faces multiple drug charges after being arrested on Tuesday following an investigation into the sale and distribution of crack cocaine in the village of Medina.
Ronald O. Riley
Ronald O. Riley, 40, of 8 Applegate Drive has been was charged with 3 counts each of criminal sale and criminal possession of a controlled substance in the third degree, which are Class B felonies.
He also has been charged with three counts of criminally using drug paraphernalia in the second degree, which are A misdemeanors.
Riley is currently on parole with the NYS Department of Corrections and Community Supervision.
The Orleans County Major Felony Crime Task Force and the Medina Police Department executed a search warrant at Riley’s residence in the Applewood Trailer Park on Salt Works Road in the town of Shelby.
Riley was arraigned in Shelby Town Court by Town Justice Dawn Keppler. He was committed to the Orleans County Jail without bail due to his previous criminal history. Riley is to return to Orleans County Court for a bail hearing, at a date to be determined.
A parole detainer was also filed with the Orleans County Jail by the NYS Department of Corrections and Community Supervision.
Orleans County Sheriff’s Deputy Jeff Cole and his K9 partner Otto also assisted the Task Force at the search warrant.
Further arrests and charges are pending in this investigation, the Task Force said.
The school year at Orleans/Niagara BOCES started on a great note with the announcement of its 2018-2019 Employees of the Year. District Superintendent, Dr. Clark Godshall, announced the winners at the opening day celebration at the North Tonawanda High School.
Anne Carnahan
Anne Carnahan, a Cosmetology teacher at the Orleans Career and Technical Education Center, was named the Teacher of the Year.
“I have been lucky enough to have worked at our career and technical centers for 14 years,” Carnhan said. “I began my career here as a substitute teacher and then was able to work as a teacher’s aide for four years, rotating between almost all of the classrooms. My teaching career began in 2011 in the Cosmetology Department at the Niagara Career and Technical Education Center and after two years there, I transferred to Orleans Career and Technical Education Center. Through all the years I have been with this organization, I have been blessed to work with absolutely amazing co-workers, friends and students. We call ourselves a “family” and it is so evident that even by the students notice and make mention of it.”
Anne says she has always had a passion doing hair. “Even though I still work part-time at a salon, I find a greater satisfaction in teaching my students my trade,” she said. “One of my favorite parts of teaching is, during a lesson, when the students all feel they can’t master it, and then, the lightbulb goes off. They get that look in their eyes and the pride in their smiles as they realize that they can accomplish anything with practice and determination. My goal each year is not to just teach cosmetology, but to help them get ready for “the real world”. So many of my kids come back after graduation and share their new life experiences and thank me for helping them with their goals.”
She says she is both honored and shocked that she was chosen to be “Teacher of the Year.” “There are so many more deserving people that I work with. I would like to thank whoever nominated me and also say that I am blessed to be a part of such an amazing group of people.”
Paulette Hamilton-Koehler
The Administrator of the Year was Paulette Hamilton-Koehler, coordinator at the Royalton-Hartland Learning Center. She has been with Orleans/Niagara BOCES for 18 years.
“My favorite part of my job is being privileged to work with the children that come to our school,” she said. “I am so appreciative to have been nominated to receive this award. I have been fortunate to work with the special education administrative team, the vision and hearing teachers, counselors and the staff at the Roy-Hart Learning Center. I am privileged to work with the hardest working, compassionate and caring staff that I have ever worked with. Making a difference in the lives of our students and their families at the BOCES has been my dream career and I could have never have done it alone.”
Judy Bennett
The Clerical Person of the Year is Judy Bennett, who works at the Orleans Career and Technical Education Center. She has been with BOCES for 10 years.
“My favorite part of my job is interacting with the students, teachers and all the amazing staff at Orleans/Niagara BOCES,” Bennett said. “I was in shock when I heard my name being called by Dr. Godshall. I am honored that someone nominated me among all of the outstanding clerical staff that I work with. It takes everyone coming together as a team to accomplish our jobs. I will work hard to uphold the title ‘Employee of the Year.’”
Greg Klopfer
The Custodian/Maintenance Person of the Year is Greg Klopfer. Greg has worked for BOCES for 20 years.
“I really enjoy driving around as a courier and getting to stop at all our sites and talk to everyone for a few moments a day,” he said. “We have such amazing staff here. It was such an awesome feeling to know that my peers nominated me as an employee of the year. I am so grateful to them.”
Susan Diemert
The Staff Specialist of the Year is Susan Diemert, who has worked at BOCES for more than three decades.
“I have worked at BOCES for 32 years and started as a GED teacher before becoming a Staff Specialist in 2002,” Diemert said. “My favorite part of the job is watching youth and adults achieve their goals every day. Whether it is to obtain a high school equivalency diploma, become employed, enter post-secondary, find housing, learn English, or enroll in a training program, we see positive outcomes that will help the individual move forward to improve his or her life. The incredible adult literacy staff provides a coordinated program that helps students overcome barriers and gain success. This past year we had 169 students receive their high school equivalency diploma and hundreds obtaining jobs and training. I am very fortunate to have a job that is challenging and rewarding. I am much honored to receive the Employee of the Year award for a job I love.”
Ann Stimm
Substitute of the Year is Ann Stimm, who was hired as a substitute clerical person in October 2018. In March 2019, she began a five-month assignment at the North Tonawanda Learning Center and was reassigned in August as a substitute account clerk typist at the Niagara Career and Technical Education Center. 5
“What I enjoy most is being able to share my years of business and secretarial experience to make filling in a seamless transition,” Stimm said. “I enjoy meeting all of the wonderful employees and students of Orleans/Niagara BOCES. When I opened the letter from Dr. Godshall, I was shocked, elated and proud to be recognized. I would like to thank BOCES for this recognition and my peers who took the time to write a letter on my behalf.”
Maggie Lupo
Teacher Aide of the Year is Maggie Lupo, who has worked at the Orleans Career and Technical Education Center since 2004.
“I started as a personal care aide,” Lupo said. “I then worked as a special education teacher aide until 2011. I came to the Orleans Career and Technical Educational Center in January of 2011, where I am currently working as a Diesel Tech teacher aide and helping out where I am needed. I enjoy my work very much. I am fortunate to have work that I really take much satisfaction from. My favorite part of the job is the people! The students love coming to school here and that just makes work enjoyable. My co-workers are some of the best educators you could ever work with! They care about the students and their futures and this is evident on a daily basis. I was quite surprised to be selected as employee of the year. I was very honored and humbled to receive such a recognition. This positive affirmation will help guide me though the semesters ahead.”
By Tom Rivers, Editor Posted 2 October 2019 at 12:50 pm
Courtesy of Town of Gaines: Gaines is proposing a change in the zoning map that expands the commercial district on Route 104, west of the Cobblestone Museum. Gaines also has commercial zoning districts at the 5 corners and intersection of routes 279 and 104.
GAINES – After a year-long effort, the Town of Gaines is proposing changes to its zoning regulations and map, including expanding the commercial district on Route 104, from the Cobblestone Museum going east to Brown Road.
That will allow more options for development on Ridge Road that aren’t in a historic district.
The town also is looking to eliminate a commercial zoning district in the Eagle Harbor hamlet, while keeping the commercial district at the 5 Corners and expanding the district at the routes 279 and 104 intersection.
The Town Board will have a public hearing 7 p.m. Thursday about the zoning changes. The hearing will be at the Town Hall.
The Town Board formed the Zoning Advisory Committee about a year ago to review the zoning. That committee worked with LaBella Associates on the project.
The committee recommended Gaines bring back its Planning Board. That board was abolished in January 2012 with its duties passed to the Zoning Board of Appeals. Town Supervisor Joe Grube said Gaines is the only town in the county without a Planning Board.
He is pleased with the zoning revisions proposed by the committee and Labella. It5 also updates a comprehensive plan for land use, that Grube said was originally adopted in 1983.
“This will bring the zoning into 2020,” Grube said.
The revisions include more detail on development in the commercial districts, especially with signage.
Other highlights include:
• Establishes regulations for R-1 Residential District and Planned Development District as floating zones. They are not specified on the zoning map, but can be added to rezoned land if the Town Board deems either district appropriate.
• Establishes new regulations for the Commercial Historic District, including standards for building design, building placement, parking and landscaping, with a goal to prevent incompatible development with the historic district.
• Adds provisions for farm labor and agricultural packing and processing facilities.
The Orleans County Planning Board last Thursday reviewed the proposal and recommended the Town of Gaines pass the changes.
Click here to see the zoning ordinance being proposed by Gaines.
By Tom Rivers, Editor Posted 2 October 2019 at 11:58 am
The original gravestone for Harris did not include a notation that he was a Medal of Honor recipient.
ALBION – Albion students are organizing a ceremony at 10:30 a.m. on Oct. 29 to recognize a Medal of Honor winner from 1869.
Charles D. Harris received a new headstone in the summer at Mount Albion Cemetery, following the efforts of the Congressional Medal of Honor Society and the Medal of Honor Historical Society.
The ceremony to recognize Harris and the new marker will be the west side of the cemetery on Route 31.
Harris, who fought in the Civil War, was awarded the Medal of Honor for his heroism in the Apache Wars in 1869. Orleans County Historian Matthew Ballard wrote about Harris on June 22 for the weekly “Overlooked Orleans” column. Click here to read the article.
On September 23, 1869, Harris was present at Red Creek, Arizona, with Company D of the 8th U.S. Cavalry, Ballard wrote. On that date, the 8th Cavalry engaged a group of Apache Indians during the Apache Wars, which resulted in three men receiving the Medal of Honor.
John Walker, George Ferrari, and Harris all received the medal for “Gallantry in Action,” but Ballard said the specifics of the engagement and the actions that warranted the awarding of the medal remain shrouded in mystery. After the war, Harris returned to Albion and lived a quiet life until his passing on September 6, 1895.
Harris had a military gravestone at Mount Albion, but it didn’t note that he was a Medal of Honor winner. The new flat stone includes an inscription that calls attention to the award. The stone was set in place by employees at Mount Albion Cemetery.
By Mike Wertman, Sports Writer Posted 2 October 2019 at 10:16 am
Contributed Photos – Dan Monacelli (46) picks up yardage during Albion’s narrow 13-12 win over Springville in the 1979 sectional championship game at Rich Stadium (now New Era Field).
Albion’s Homecoming festivities Friday will feature a special celebration marking the 40th anniversary of the Purple Eagles 1979 undefeated sectional champion football team.
It was one of the most memorable moments in Albion High’s long football history as the Purple Eagles capped off a perfect 9-0 season by scoring a thrilling 13-12 victory over Springville in the inaugural Section VI championships at Rich Stadium (now New Era Field).
That special achievement will be in the spotlight when the players and coaches from the team will be honored at the 7 p.m. game against Olean.
“It was just an unbelievable experience,” said Dan Monacelli who accounted for all 13 of Albion’s points and also made a clutch interception deep in Purple Eagles territory in the final minute to clinch the championship victory.
“Everybody on the team was so close,” added Monacelli. “Nobody really gave us a chance as our starting quarterback was out but we had some guys really step up. We just put it all together.”
“It was just a great group of kids, a hard working real old school team,” said Coach Dick Diminuco who was in his first season at the Purple Eagles varsity helm that fall. “We knew we had our hands full playing Springville as they had a very food team. That game was a thrill for me, for our school district and our community.”
Albion earned a berth in the sectional title contest by nipping host Newfane 14-8 in the second from last regular season game to lock up the Division VI title.
Quarterback Jim Benedetti accounted for both Albion touchdowns which came just before halftime. He hooked up with Monacelli on a 69 yard pass play for the first TD and then broke loose on a 48 yard run for what proved to be the game winning score.
It proved to be a costly win for the Purple Eagles though as Benedetti, who was also a starting linebacker on defense, suffered a knee injury and was out for the rest of the season.
However, as Monacelli notes, the Purple Eagles “had guys step up” with the main one being Jeff Klips who took over the key quarterback position. He led the Purple Eagles to a 27-12 win over Trott in the regular season finale and then to the title game victory at Rich Stadium.
The Purple Eagles had to rally from deficits of 6-0 and 12-6 to claim the sectional title.
Albion Coach Dick Diminuco talks with Monacelli.
Albion pulled even at 6-6 with 4:32 to go in the first half on a 3 yard touchdown run by Monacelli capping a 67 yard drive which was highlighted by runs of 20 and 12 yards by Dennis Massey.
Springville though answered right back with a 29 yard touchdown pass from quarterback Mike Nugent to Tony Baker regaining a 12-6 lead for the Griffins at half-time.
That set the stage for Albion’s dramatic game winning touchdown play in the third quarter which Diminuco and Monacelli both vividly recall.
On the play Monacelli, running a fly pattern up the sideline, hauled in a perfect pass from Klips at midfield without breaking stride and outraced the surprised Springville secondary all the way to the end zone to complete the huge 78 yard touchdown play.
“During a timeout Danny came up to me and said coach I can beat him deep,” said Diminuco of the decisive play call.
“Coach said OK you did the talking part now get the walking part done,” said Monacelli.
“And sure enough he did it,” said Diminuco of the decisive TD pass play. “That’s one of the things I remember most about the game.”
Monacelli then kicked what proved to be the deceive extra point for a 13-12 Albion lead.
Springville did mount one last ditch scoring threat but Monacelli came up with a huge interception at the Albion 11 yard line with just 46 seconds remaining in the game to lock up the victory.
A caravan of 25 bus loads of Purple Eagles fans savored the victory at the stadium and upon the team’s return to Albion they were met by a parade led by firetrucks and then a huge welcoming crowd when they reached the school.
“When we got to the parking lot at the school there was just a huge crowd,” recalls Monacelli. “We literally had to go through a tunnel of people to get back to the locker room. The whole day was just an unbelievable experience. It was the best year of my life.”
“It’s going to be fun Friday getting everybody back together,” said Diminuco. “I’m glad they’re doing it.”
“It’s good to see the guys coming back,” added Monacelli. “I’m really looking forward to it.”
Members of the ’79 team will meet with this year’s squad in the locker room before the game and then be introduced during half-time ceremonies.
Larry Warren picks up good yardage for the Purple Eagles.
By Tom Rivers, Editor Posted 2 October 2019 at 10:08 am
Image of Holley Waterfalls receives an honorable mention
The winning photos in the 14th Annual Erie Canalway Photo Contest have been announced by the Erie Canalway National Heritage Corridor.
The 12 winning images will be showcased in the 2020 Erie Canalway National Heritage Corridor calendar, which will be available for free at libraries and visitor centers beginning in December.
The first place winner in “Classic Canal” shows the Tugboat Erie in Little Falls. The photo was taken by Frank Forte of Little Falls.
Judges selected first, second and third place photographs in four contest categories from nearly 250 entries. In addition, twelve photographs received an honorable mention, including one that shows the Holley Waterfalls.
“These beautiful photos showcase the dramatic landscapes, rich heritage, and vibrant communities along this historic waterway,” said Bob Radliff, Erie Canalway Executive Director. “We hope they inspire people to explore this extraordinary place and celebrate the canal that built the Empire State.”
By Tom Rivers, Editor Posted 2 October 2019 at 9:32 am
Photos by Tom Rivers
ALBION – Firefighters sweep debris from an accident this morning at the intersection of Zig Zag and Butts roads. Firefighters were dispatched to the scene at 8:27 a.m.
The driver of the red Chevrolet Colorado truck was ticketed for failure to yield at the stop sign.
A woman driving the Jeep went into a ditch. She was trapped in the vehicle. Albion firefighters removed the driver’s door so the woman could be freed.
She had back pain and was taken by COVA ambulance to a hospital.
By Tom Rivers, Editor Posted 2 October 2019 at 7:48 am
Michael Smith took this photo recently of cattle on Route 98 at sunset in Carlton.
The National Weather Service in Buffalo forecasts more rain and thunderstorms in Orleans County and Western New York this morning, following heavy rainfall on Tuesday.
“Some of the storms may produce locally heavy rainfall, which may result in minor flooding in poor drainage areas,” the Weather Service said. “Some storms may also contain gusty winds.”
Today is forecast to reach a high of 63, with the temperature falling to 53 by 5 p.m.
There are showers in the forecast for Thursday morning, with a high near 58. Friday there will be a high near 58, with a chance of showers before 2 p.m., according to the Weather Service.
Governor Andrew M. Cuomo today announced the application period for the 2019 Lake Ontario-St. Lawrence River Flood Relief and Recovery Program is now open to homeowners directly impacted by historic Lake Ontario flooding from January 1, 2019 to September 30, 2019.
Homeowners who reside in Cayuga, Jefferson, Monroe, Niagara, Orleans, Oswego, St. Lawrence and Wayne counties are eligible to apply to receive up to $50,000 in state funding to help offset damages to their primary residences. Only applications for primary residences will be accepted from October 1 through October 31. The program has committed to evaluating secondary homeownership should funding still be available once primary homes have been addressed.
“Historic flooding along the shores of Lake Ontario and the St. Lawrence River has had severe consequences for homeowners and it is vital that New York State intervene and lend a helping hand,” Governor Cuomo said. “While the State continues to focus on regionally-significant rebuilding and resiliency efforts, the $20 million available for homeowners will provide much needed financial relief and is a major step forward for families recovering from these devastating floods.”
The 2019 Flood Relief and Recovery Program will be administered through New York State Homes and Community Renewal and will allocate up to $20 million to assist homeowners and help offset damages to their primary residence.
Application criteria for homeowners includes:
• Homeowners who were impacted by flooding January 1, 2019 through September 30, 2019.
• Applications must be received by October 31, 2019.
• Applications must address damage incurred to primary residences, which sustained direct physical flood-related damage that threatens the safety of the home.
• Funding to address damages to secondary homes may be considered following fulfillment of primary residence applications. Further details on a new application window will be forthcoming.
Applications, including the full list of project criteria, are available on the New York State Homes and Community Renewal website (click here).
The funding complements Governor Cuomo’s creation of REDI, which includes a multi-agency commission that has been studying ways to strengthen infrastructure along Lake Ontario’s waterfront while bolstering the region’s local economies. Through REDI, the State has committed up to $300 million to rebuild the shoreline, as well as improve resiliency in flood prone regions along Lake Ontario.
MEDINA – These two kayakers were seen out on Glenwood Lake this afternoon just as the storm was approaching bringing heavy rain, thunder and lightning.
The conditions caused the cancellation of the several high school sporting events.
Press Release, Geoffrey S. Berman, U.S. Attorney for the Southern District of New York
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that Christopher Collins, who represented the 27th District of New York as a member of the U.S. House of Representatives, pled guilty to participating in a scheme to commit insider trading and to making false statements to federal law enforcement agents when interviewed about his conduct.
Chris Collins
“By virtue of his office, Christopher Collins helped write the laws of this country, but he acted as if the law did not apply to him,” U.S. Attorney Geoffrey S. Berman said. “Today, by pleading guilty, Collins acknowledged that while he was a member of Congress he committed insider trading and then lied to the FBI in an attempt to cover it up. Today’s plea is a reminder that all citizens stand equal before the law in our criminal justice system.”
Collins, 69, pled guilty to one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of five years in prison, and one count of making false statements to law enforcement officials, in violation of Title 18, United States Code, Section 1001, which also carries a maximum penalty of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
Collins will be sentenced January 17, 2020.
Mr. Berman praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
The following facts are based on the allegations contained in the Superseding Indictment and statements made in related court filings and proceedings:
The Insider Trading Scheme
In or about June 2017, Christopher Collins, who, in addition to serving on Innate’s Board of Directors, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading. Specifically, on or about June 22, 2017, Collins learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”).
The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, Collins was obligated to keep the Drug Trial results secret until Innate publicly released them. Instead, in breach of those duties, Collins tipped his son, Cameron Collins, who was also a substantial Innate shareholder, so that Cameron Collins could make timely trades and tip others before Innate publicly released the Drug Trial results.
Cameron Collins traded on the inside information and passed it to the father of his fiancée, Stephen Zarsky, as well as to three individuals not named in the Superseding Indictment (“Individual-1,” “Individual-2,” and “Individual-6”), so that they could utilize the information for the same purpose. Zarsky, in turn, traded on the information and used it to tip three more individuals not named in the Superseding Indictment (“Individual-3,” “Individual-4,” and “Individual-5,”) so that they too could engage in timely trades in Innate stock. All of the trades preceded the public release of the negative Drug Trial results.
In total, these trades allowed Cameron Collins and Zarsky, and Individual-1 through Individual-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public.
The Drug Trial Results
In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416. Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416. Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.
The Drug Trial was widely expected to be completed around the summer of 2017. For example, on or about June 9, 2017, Innate’s chief executive officer sent various individuals, including Chris Collins, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.”
As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive. The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017. These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis. The results were not publicly released at that time. Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed. Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the public announcement.
Dissemination of the Drug Trial Results
On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s Board of Directors, including Collins. The email explained to Innate’s Board of Directors for the first time that the Drug Trial had been a failure. The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’” The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news. . . .”
At the time Collins received this email, he was attending the Congressional Picnic at the White House. At 7:10 p.m., Collins replied to the email, stating, in part, “Wow. Makes no sense. How are these results even possible???” After responding to the Innate CEO’s email, Collins called his son, Cameron Collins. They traded six missed calls between 7:11 p.m. and 7:15 p.m. At 7:16 p.m., Chris Collins and Cameron Collins spoke for more than six minutes. During that six-minute phone call, Christopher Collins told Cameron Collins, in sum and substance, that MIS416 had failed the Drug Trial.
Trading and Tipping by Cameron Collins and Zarsky
Cameron Collins began placing orders to sell his Innate shares the morning after he received inside information from his father. Between the morning of Friday, June 23, 2017 and the close of the market on Monday, June 26, 2017, Cameron Collins sold approximately 1,391,500 shares of Innate stock. These sales allowed Cameron Collins to avoid approximately $570,900 in losses.
Furthermore, after learning the Drug Trial results from Chris Collins, on or about the night of June 22, 2017, Cameron Collins provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement: (1) his fiancée, Individual-1; (2) Zarsky and Zarsky’s wife, Individual-2; and (3) Cameron Collins’s friend, Individual-6. Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information.
On or about the morning of June 23, 2017, Zarsky provided the negative Drug Trial results that he had learned from Cameron Collins and Individual-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, Individual-3; (2) his sister, Individual-4; and (3) his longstanding friend, Individual-5. Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.
False Statements to the FBI
On or about April 25, 2018, Special Agents from the FBI separately interviewed CHRISTOPHER COLLINS, Cameron Collins, and Zarsky. During these interviews, and as detailed in the Superseding Indictment, CHRISTOPHER COLLINS, Cameron Collins, and Zarsky made false statements to the FBI to cover up their participation in the insider trading scheme.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Scott Hartman, Max Nicholas, and Damian Williams are in charge of the prosecution.
The charges against Cameron Collins and Stephen Zarsky are merely accusations, and they are deemed innocent unless and until proven guilty.
As for the defendants who have not pled guilty, the description of the charges set forth herein constitute only allegations.
By Tom Rivers, Editor Posted 1 October 2019 at 2:43 pm
Hoag Library will host Oct. 29 open house for Local Waterfront Revitalization Program
ALBION – A steering committee working on a plan to better utilize the Erie Canal in Orleans County welcomes input from the community.
There will be a 7 p.m. open house on Oct. 29 at Hoag Library for the Local Waterfront Revitalization Program for the canal communities in Orleans County.
There will be maps on display and community members are welcome to propose ideas for how the canal can boost the local economy and quality of life.
This will be the first public outreach meeting as a steering committee works on a waterfront development plan for seven Erie Canal municipalities.
Orleans County received a $62,000 state grant in December to develop a Local Waterfront Revitalization Program for the canal communities outside the Village of Medina. That includes the towns of Shelby, Ridgeway, Gaines, Albion and Murray, and the villages of Albion and Holley. Medina has been working on its own LWRP.
The county has hired LaBella as a consultant for the plan for the seven municipalities. The steering committee has met twice.
Each of the municipalities has a representative who is tasked to weigh in on current strengths and weaknesses of the canal, and opportunities to make the historic waterway and towpath a bigger asset.
The state is looking to spend more money to promote the canal and make it a better resource for the canal communities. The canal’s new caretaker, the New York Power Authority, also has shown a commitment to improving the canal infrastructure, County Legislator Ken DeRoller said.
The steering committee for the LWRP will be looking for ways to improve trail access, perhaps by adding a boat or kayak launch. The committee wants better signage (mile markers and information about services) and also wants to identify economic development projects with businesses near the canal.
That plan can be used to help the municipalities pursue grant funding through the state.
The steering committee members include: Ken DeRoller, Orleans County; Jake Olles, Town of Albion; Samuel Robinson, Village of Albion; Tyler Allport, Town of Gaines; Mark Bower, Village of Holley; Chris Van Dusen, Town of Murray; Mary Woodruff, Town of Ridgeway; and Ed Houseknecht, Town of Shelby. Natasha Wasuck, Village of Albion, and Brian Napoli, Town of Ridgeway, also have recently joined the committee.
