By Tom Rivers, Editor Posted 22 December 2020 at 7:35 pm
Former Congressman Chris Collins, who starting serving a 26-month sentence in a federal prison in October, has been pardoned by President Donald J. Trump.
Chris Collins
Collins was the first member of Congress to endorse Trump for president on Feb. 24, 2016. He also was a frequent Trump surrogate, appearing on many news programs to speak on behalf of Trump and his policies.
Collins was charged with conspiring to commit securities fraud and making false statements to the FBI. He was sentenced to 26 months in federal prison and on Oct. 13 he reported to a minimum security federal prison camp in Pensacola, Fla.
In a news release from the White House, President Trump granted the full pardon “at the request of many Members of Congress.”
The news release notes that Collins served in Congress for nearly seven years, and “spent his early career as a successful businessman and entrepreneur, before devoting his life to public service.”
Collins was elected County Executive for Erie County in 2007, and served one four-year term.
“During his tenure in Congress, Mr. Collins was known for his particular focus on the wellbeing of small businesses, agriculture, and sciences,” according to the White House press release.
Trump also pardoned Duncan Hunter, a California congressman who pled guilty to misusing campaign funds.
Nate McMurray lost a close race to Collins for the 27th Congressional District in November 2018. He said on Twitter soon after the news broke about Collins that Republicans should denounce the pardon.
“Disgraceful, but sadly we predicted it,” McMurray tweeted. “No justice. No ethics. No dignity.”
‘Collins’s hubris is a stark reminder that the people of New York can and should demand more from their elected officials, and that no matter how powerful, no lawmaker is above the law.’
Press Release, U.S. Attorney’s Office – 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, was sentenced to 26 months in prison today by U.S. District Judge Vernon S. Broderick for participating in a scheme to commit insider trading and for making false statements to federal law enforcement agents when interviewed about his conduct.
Chris Collins
“Former New York Congressman and Innate board member Christopher Collins received confidential, nonpublic information that one of Innate’s drugs in development had just failed a clinical trial,” said U.S. Attorney Geoffrey S. Berman. “Moments later, from the White House lawn, Collins notified his son Cameron, so that he could trade the stock ahead of the public announcement and avoid taking a substantial loss on the stock. He then lied to the FBI when asked about his conduct. Collins’s greed and disregard for the law have now led to a criminal conviction for insider trading and lying to the FBI, his resignation from Congress, and over two years in federal prison. Lawmakers bear the profound privilege and responsibility of writing and passing laws, but equally as important, the absolute obligation of following them. Collins’s hubris is a stark reminder that the people of New York can and should demand more from their elected officials, and that no matter how powerful, no lawmaker is above the law.”
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 the board of directors of Innate Immunotherapeutics (“Innate”), an Australian biotechnology company, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading. Specifically, on or about June 22, 2017, CHRISTOPHER 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, CHRISTOPHER COLLINS was obligated to keep the Drug Trial results secret until Innate publicly released them. Instead, in breach of those duties, CHRISTOPHER 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 Stephen Zarsky, the father of his fiancée, 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 (“CEO”) sent various individuals, including CHRISTOPHER 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 (the “Public Announcement”). 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 CHRISTOPHER 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 CHRISTOPHER COLLINS received this email, he was attending the Congressional Picnic at the White House. At 7:10 p.m., CHRISTOPHER 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, CHRISTOPHER 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., CHRISTOPHER 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 CHRISTOPHER COLLINS. 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 CHRISTOPHER 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 Federal Bureau of Investigation (“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.
• • •
In addition to the prison term, CHRISTOPHER COLLINS was sentenced to one year of supervised release and ordered to pay a fine of $200,000.
Mr. Berman praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
By Tom Rivers, Editor Posted 30 September 2019 at 3:52 pm
File photo by Tom Rivers: Chris Collins speaks during the Orleans County Republican Rally in October 2018.
Chris Collins is out as the area’s congressman. He has submitted a letter of resignation from Congress today, with the letter going to Nancy Pelosi, House speaker, and also to Gov. Andrew Cuomo.
Collins is resigning a day before a change-of-plea hearing in an ongoing federal insider trading case.
Collins is accused of tipping off friends and family that the stock for Innate Immunotherapeutics, a pharmaceutical company, was about to take a steep dive. Collins was on Innate’s board and was a major investor in the Australian firm. He was indicted in August 2018.
He managed to hold off Nate McMurray, a Democrat, in a close re-election fight last November in the heavily Republican district. Collins was first elected to Congress in November 2012.
He leaves more than a year remaining on the current two-year term. Gov. Cuomo will decide whether there will be a special election or if the position will be unfilled for more than a year.
Collins was arrested along his son Cameron, and Stephen Zarsky, the father of Cameron’s fiancé. They were charged with conspiracy to commit securities fraud, one count of wire fraud, one count of conspiracy to commit wire fraud and one count each of making false statements to the FBI.
Collins has been stripped of his committee posts in the House since not long after the indictment. He remained active in the eight-county district in the past year, attending many Eagle Scout ceremonies, Republican rallies and picnics, and other community events.
Collins has been a strong advocate for Donald Trump and was the first member of Congress to endorse Trump’s candidacy.
Nate McMurray, who is running again for Congress, issued this statement:
“The real victims of Collins’ crimes are the people of his district that he repeatedly lied to about his guilt. Collins and Republican party insiders robbed his constituents of the representation they need on important issues like the rising cost of healthcare, the opioid epidemic, and the fight for good paying jobs. They all failed us, so I’m going to keep talking about the critical issues Western New Yorkers face every day, because that’s what public service should be about, working to make other people’s lives just a little bit better.”
State Sen. Rob Ortt also is running for Congress as a Republican. He issued this statement:
“It is vital that we continue to have a strong, conservative voice representing the residents of New York’s 27th Congressional District and elect a candidate who will defend President Trump’s agenda. I am the only candidate in this race who has proven that they are willing to do both. It is time that we send a battle-tested patriot to Washington who will stand up for our district, stand up to the Party of Impeachment, and push back against the radical socialists running our nation’s Democrat Party.”
By Tom Rivers, Editor Posted 11 August 2018 at 1:11 pm
Chris Collins
WILLIAMSVILLE – Congressman Chris Collins has suspended his campaign for re-election, three days after he was indicted on federal charges.
Collins is accused of insider trading, of tipping off friends and family that the stock for Innate Immunotherapeutics, a pharmaceutical company, was about to take a steep dive. Collins was on Innate’s board and was a major investor in the Australian firm.
Collins was arrested along his son Cameron, and Stephen Zarsky, the father of Cameron’s fiancé. They have been charged with conspiracy to commit securities fraud, one count of wire fraud, one count of conspiracy to commit wire fraud and one count each of making false statements to the FBI.
Collins on Wednesday said he would push on in his campaign for re-election. He has been in Congress for six years, in a solidly Republican district that includes Orleans and seven other counties.
Collins issued the following statement today:
“Democrats are laser focused on taking back the House, electing Nancy Pelosi Speaker and then launching impeachment proceedings against President Trump. They would like nothing more than to elect an ‘Impeach Trump’ Democrat in this District, which is something that neither our country or my party can afford.
“After extensive discussions with my family and my friends over the last few days, I have decided that it is in the best interests of the constituents of NY-27, the Republican Party and President Trump’s agenda for me to suspend my campaign for re-election to Congress.
“I will fill out the remaining few months of my term to assure that our community maintains its vote in Congress to support President Trump’s agenda to create jobs, eliminate regulations, reduce the size of government, address immigration and lower taxes.
“I will also continue to fight the meritless charges brought against me and I look forward to having my good name cleared of any wrongdoing.”
Six years ago Lyndonville native David Bellavia challenged Collins in the race. Bellavia, an Iraq War veteran and radio talk show host, issued this statement on Twitter: “Help is on the way. Integrity will be restored in #NY27.” Bellavia didn’t detail if he would seek the position.
Nate McMurray, a Democrat seeking election to the 27th, called on Collins to resign earlier today.
“I can’t believe, several days after this news, that my opponent is still in this race and that the Republican establishment is not saying in unison ‘resign,’” McMurray posted on Twitter. “Mr. Collins, please do the right thing. Step down. They knew this was coming. You should’ve never even been endorsed.”
Democratic Leader Nancy Pelosi issued this statement:
“Speaker Ryan must call on Congressman Collins to resign. No person is above the law, not the President nor his first supporter in Congress.
“This insufficient and overdue announcement does little to drain the toxic cesspool of self-enrichment, special interest deals and corruption that has proliferated in Washington under GOP control.
“Over and over, the Republicans’ brazen corruption, cronyism and incompetence has left hard-working families in the cold, as the GOP Congress races to put the profits of special interests and lobbyists before the well-being of the American people. Families face a future of polluted air, dirty water and soaring prescription drug prices under the GOP’s cynical donor-driven agenda.”
By Tom Rivers, Editor Posted 30 March 2017 at 9:50 am
The Democratic Chairs from the eight counties in New York’s 27th congressional district have launched a “Turn 27 Blue” initiative, seeking candidates to challenge incumbent Chris Collins in Congress.
Collins has been a strong supporter for Donald Trump’s presidency, and was the first member of Congress to publicly support Trump. The local congressman is a frequent guest on the cable news shows, defending the president and his policies.
Chris Collins
Collins has declined to hold town hall meetings in his district, and that – as well as his support for Trump – has riled many people in his district.
“There is just so much energy on the ground right now,” Genesee County Democratic Chairman Michael Plitt said in a news release. “So we want to make sure we can help people navigate all that’s involved.”
Democratic Party leaders want to identify candidates for the election in November 2018, and help them learn about the process of running for Congress.
It won’t be easy to defeat Collins, who is in a district with a strong Republican advantage over Democrats in enrollment – 186,679 to 150,210.
Collins was first elected in 2012, narrowly defeating incumbent Kathy Hochul. Last November, Collins was re-elected with about two thirds of the vote against Diana Kastenbaum of Batavia.
Democratic Party leaders in the 27th District say there is “unprecedented interest” in next year’s Congressional election.
“We are just getting inundated with people saying they want to run against Chris Collins,” said Jeremy Zellner, the Erie County Democratic chairman. “We also want to work closely with the many different grassroots organizations that want to be involved in the 27th District.”
The Orleans County Democratic Committee is led by Jeanne Crane. She and other Democratic Party leaders in the district want to work with new groups that have sprung up since the November election.
“We decided a systematic approach will help to make the process more accessible to all who might be interested and give our eventual nominee the greatest chance for success,” said Judith Hunter, chairwoman of the Livingston County Democratic Committee. “Getting started now helps, too.”
Some of Collins’ constituents have protested outside his district offices, and have taken out billboards, asking him to hold town hall meetings.
“From weekly rallies to protests to letter-writing efforts to billboard campaigns, ordinary people in this district are standing up and rejecting what Chris Collins has offered us,” said Michelle Johnston Schoeneman of Citizens Against Collins. “We’re ready to roll up our sleeves and get to work to help those who are willing to stand up and become candidates. It’s great to be part of this effort.”
Other groups that are opposing Collins include GLOW Progressives, Indivisible NY 27th and Sister District for Western New York.
Interested candidates for the 27th District are urged to send a resume and cover letter to Chair@livingstondemocrats.org, as Hunter will coordinate this effort on behalf of the larger group.
“Rep. Collins has just been so unresponsive to his constituents that everyone is eager to get started,” Hunter said.
By Tom Rivers, Editor Posted 6 August 2020 at 10:39 am
Chris Collins is asking for a fourth delay in his sentencing on insider trading. The former congressman from Clarence pleaded guilty on Oct. 1 to scheme to commit insider trading and to making false statements to federal law enforcement agents when interviewed about his conduct.
In January a federal judge sentenced Collins to 26 months in a federal prison. But Collins hasn’t been imprisoned yet. His lawyers have argued that he has a high risk of contracting the coronavirus.
“I have always believed that justice must be balanced with mercy, but Chris Collins has seen more mercy than most. Justice delayed is justice denied—he needs to go to jail now,” said Nate McMurray, who lost a close election to Collins in November 2018.
McMurray is seeking the position again. He lost another close election on June 23, this time to Chris Jacobs. That was to fill out the remainder of Collins’ term. The two will be on the ballot against each other again in November for a full two-year term.
The former congressman now lives in Florida. He also was sentenced to one year supervised release and a $200,000 fine. He resigned from his 27th Congressional District seat on Sept. 30, 2019.
“We have been here before. Hundreds of us wrote letters to implore the judge in Collins’ case to administer a fair sentence,” said Nate McMurray, who lost a close election to Collins in November 2018. “We watched his tearful pleas; the hammer of justice raised, but not brought down. Chris Collins now unapologetically claims the pandemic threatens this life and should prevent him from serving his prison sentence—it’s a twisted irony that he was the first supporter of President Trump in Congress, the man who so horribly mishandled the pandemic, which led to so many avoidable deaths across our country and especially in New York State.”
McMurray, in a statement to the media today, said Trump is pushing to reopen schools around the country, despite Covid-19 on the rise in many states.
“Trump and his ilk are also demanding that our schools open immediately, but that elections be delayed, and now that justice be delayed too,” McMurray said. “If our kids can go back to school, Chris Collins can pay his debt to society. He denied this region representation, and he lied to secure power and privilege. Politicians like Trump yell ‘law and order,’ but when it comes to their buddies, it’s a different story: Manafort, Stone, Flynn, and yes, Collins.”
By Mike Wertman, Sports Writer Posted 6 May 2020 at 11:54 am
Contributed Photo – Christy Mathewson
Many no doubt know that Babe Ruth played an exhibition baseball game at Medina’s Oak Orchard Park (now Veterans Memorial Park) in October of 1920 during which he hit one of his famous home runs.
However, probably not too many know that a decade earlier another baseball Hall of Famer, Christy Mathewson, pitched in Medina.
And that appearance was truly an unusual one as Mathewson’s pitching performance was in an indoor baseball exibition game at the Pearl Street Armory (now the home of the Orleans County YMCA) on January 14, 1910.
Mathewson was the star player on New York Giants manager Hall of Famer John McGraw’s barnstorming team of major leaguers which faced off against a Medina squad.
The free scoring indoor baseball contest (a popular sport of that era) saw the Giants win 22-19 out hitting the local squad 28-13.
The Medina Daily Journal’s January 15 1910 report of the game gave Mathewson’s efforts mixed reviews. It stated “Mathewson is a fine big boy, draws a good salary for appearing, gets a fine hand from the crowds and then proceeds to enjoy the game as a real player should – kicks on most everything, makes a few safe hits and keeps himself general conspicuous. Christy is a good ball player, but at the indoor game, he’s rather tame. However, the crowd saw him in action, liked his boyish ways and went home satisfied with the entertainment.”
The report also highlights a Medina rally at the plate against Mathewson early in the game which gave the locals their only lead. It notes “For two innings the visitors made a few safe wallops, and aided by many errors, they corralled seven tallies. Meanwhile, they held the locals to two runs. Then our side went after Mathewson the Great. They took kindly to his offerings and passed them around indiscriminately among the crowd, and when the slaughter was over we led, eight to seven. This was the only time we were in the front of the parade.”
Matthewson was coming off a 1909 major league season in which he posted a 25-6 record on the mound for the Giants. The upcoming 1910 season would see him go 27-9. During his 17 year major league career (1900-1916) he compiled a record of 373-188 with 2507 strikeouts and an earned run average of 2.13. He registered three shutouts in the 1905 World Series leading the Giants to the title.
The Journal’s January 13, 1910 story leading up to the game stated that “it is expected that fully 1200 people will be there for the contest.
The article also lists the names of the Medina players on the team including “Con” Bradley at pitcher, Cleary or Bacon at catcher, Reil at first, Eddie Collins at second ,”Crab” Mpontgomery at shortstop and Boyle at third with Tillman, H. Montgomery, Haingrey or Cleary in the outfield.
Congressional candidate urges challengers to oppose potential pardon for Collins
Press Release, Nate McMurray for Congress
HAMBURG – Today, NY-27th congressional candidate Nate McMurray voiced his opposition to a delayed sentence and potential pardon for former GOP Representative Chris Collins.
Yesterday, a federal judge granted a two-month delay for the prison surrender of Collins, who in January was sentenced to serve 26 months in prison for conspiracy to commit securities fraud and lying to the FBI. Collins’ lawyers argued that he has a high risk of contracting the coronavirus.
“No average citizen would be allowed this preferential treatment over and over again,” McMurray said. “Collins’ high-priced lawyers bought him another two months of freedom. Chris Collins broke the law numerous times and disgraced Western New York and he has left this region without a leader during an unprecedented crisis.”
“Collins’ legal team is attempting to seek a pardon for after the June 23rd election,” McMurray said. “My opponents Chris Jacobs, Stefan Mychajliw and Beth Parlato must stand up and say this is wrong. All three of them were either silent when Chris Collins ran or openly campaigned for him. Such behavior has to end now.”
State Assemblyman Steve Hawley (R,C,I-Batavia) announced today that he has endorsed State Sen. Chris Jacobs of Buffalo in the April 28 special election for U.S. Congress.
Jacobs is running to serve the remaining seven months of former Rep. Chris Collins’ term representing New York’s 27th Congressional District. The district spans eight counties, including Orleans.
There will be another general election in November for a full two-year term for the position.
“I am wholeheartedly endorsing Senator Jacobs to serve as our next Congressman,” Hawley said. “In an era highlighted by radical ideals and attacks on our values, we need a strong leader and proven legislator who will stand up for our beliefs here in Western New York. Senator Jacobs is a successful businessman with a proven track record of creating jobs and giving back to his neighbors philanthropically. I endorse Senator Jacobs in the April special election and am confident he will serve with honor and dignity as our next Congressman.”
Jacobs has picked other other endorsements from key Republican leaders including President Donald Trump, House Republican Leader Kevin McCarthy (R-CA), House Republican Whip Steve Scalise (R-LA), Congresswoman Elise Stefanik (R-NY), former Congressman Jack Quinn (R-NY), State Senator Patrick Gallivan (SD-59), and Erie County Sheriff Tim Howard.
HAMBURG – Nate McMurray, Democrat running in the special election in NY-27, issued the following statement criticizing the rumored presidential pardon for former Congressmember Chris Collins, who resigned from Congress following pleading guilty to felony insider trading. Collins was sentenced to 26 months in prison on Friday. So far, 14 Trump aides, donors and advisers have been indicted or imprisoned.
“President Trump should not further the injustice inflicted on Western New York,” McMurray said. “His own Justice Department pursued this case and won a sentence that includes prison time for Mr. Collins, a convicted felon. This should not be a Democratic or Republican issue; I urge all Republican candidates in this race, elected officials, and party leaders to stand unified in defense of the rule of law in America. Collins was a wealthy politician who acted as if laws don’t apply to him. We all need to tell him that America’s laws apply to everyone. He must pay his debt to society and not have it wiped away because of his political support for the president.
“I know that these are the same Republican insiders who enabled and protected Collins, long after we all knew he was guilty, while working people paid for his salary and pension. Now is the time for them to do what’s right. Join me.”
