The House Ethics Committee has announced it will convene a special panel to investigate Rep. Chris Collins and his alleged insider trading activities as a member of Congress.
The investigation will be led by Rep. Mimi Walters, a Republican from California but will not begin until federal criminal proceedings against Collins have run their course.
Collins was arrested Aug. 3 and accused of securities fraud, wire fraud, and lying to the FBI.
The Erie County businessman is accused of calling his son, Cameron Collins, with a stock tip after receiving word, as a member of the board of Innate Innate Immunotherapeutics, that a drug under development to treat secondary multiple sclerosis had failed a key clinical trial.
After receiving the call, according to Federal documents, Cameron began selling his holdings in Innate after receiving the call but before the news of the failed trail had been released to the public, as well as calling other friends and family to share the news with them. As a result, the group of stockholders reportedly sold off more than 1.4 million shares of stock.
According to House rules, the Ethics Committee must open an investigation anytime a member of Congress is arrested. Politico reported its unusual for the committee, which is controlled by Republicans, to announce an investigation so close to mid-term elections.
The committee will also investigate Rep. Duncan Hunter, a Republican representing Eastern San Diego County, including El Cajon. Hunter is accused, like his father, who held the same seat for 21 years prior to his son, of using campaign funds for personal expenses. Collins and Hunter where the first two members of Congress to endorse Donald Trump during the GOP primaries.
