Chris Collins

Christopher Carl Collins
Born:	May 20, 1950 Schenectady, New York
Charges:	Conspiracy to commit securities fraud, Making false statements to the FBI
Sentence:	26 months
Facility:	FPC Pensacola
Status:	Pardoned

Christopher Carl Collins (born May 20, 1950) is a former American politician and businessman who served as the U.S. Representative for New York's 27th congressional district from 2013 to 2019. Collins was the first sitting member of Congress to endorse Donald Trump's 2016 presidential campaign and served on Trump's presidential transition team. In October 2019, Collins pleaded guilty to conspiracy to commit securities fraud and making false statements to the FBI in connection with an insider trading scheme involving Innate Immunotherapeutics, an Australian biotechnology company. He was sentenced to 26 months in federal prison but served only approximately two months before receiving a full presidential pardon from President Trump on December 22, 2020.

Summary

Chris Collins built a career in business and politics before his election to Congress in 2012. He previously served as Erie County Executive from 2007 to 2011 and had extensive business experience in the manufacturing sector. In Congress, he became an early and prominent supporter of Donald Trump, endorsing him in February 2016 when most Republican establishment figures were still skeptical of Trump's candidacy.

Collins' downfall began at a White House congressional picnic on June 22, 2017, when he received an email from the CEO of Innate Immunotherapeutics informing him that the company's experimental drug for multiple sclerosis had failed clinical trials. Collins, who sat on the company's board of directors and was one of its largest shareholders, immediately called his son Cameron to tip him off about the news. Cameron and others then sold their shares before the information became public, avoiding substantial losses when the stock price plummeted 90%.

After initially claiming innocence and even running for reelection while under indictment, Collins ultimately resigned from Congress and pleaded guilty on October 1, 2019. His pardon by President Trump came as part of a wave of clemency grants to Trump allies in the final weeks of his first administration.

Background

Early Life and Education

Christopher Carl Collins was born on May 20, 1950, in Schenectady, New York. He earned a bachelor's degree in mechanical engineering from North Carolina State University and later obtained an MBA from the University of Alabama at Birmingham.

Business Career

Collins had an extensive career in business before entering politics. He worked in various manufacturing and engineering companies and became wealthy through his business ventures. He later became a major investor in Innate Immunotherapeutics, an Australian biotechnology company developing treatments for multiple sclerosis, where he also served on the board of directors.

Political Career

Collins served as the Erie County Executive from 2007 to 2011. In 2012, he was elected to represent New York's 27th congressional district in the U.S. House of Representatives. He was reelected in 2014 and 2016.

On February 24, 2016, Collins became the first sitting member of Congress to endorse Donald Trump for president, a decision that gave Trump's campaign a significant boost of establishment credibility. Collins subsequently served on Trump's presidential transition team.

The Insider Trading Scheme

The Congressional Picnic

On June 22, 2017, Collins attended a congressional picnic at the White House. While at the event, he received an email from the CEO of Innate Immunotherapeutics with devastating news: the company's experimental multiple sclerosis drug had failed in clinical trials. As a board member and one of the company's largest shareholders, Collins understood the implications—the stock price would collapse once the news became public.

According to prosecutors, surveillance footage showed Collins stepping away from the picnic to make phone calls immediately after receiving the email. He called his son Cameron multiple times, attempting to reach him to convey the nonpublic information.

The Stock Sales

After being warned by his father, Cameron Collins attempted to sell his shares. Over the next two days, Cameron Collins, his fiancée Lauren Zarsky, her father Stephen Zarsky, and others sold their shares of Innate Immunotherapeutics stock.

When the news of the failed drug trial became public on June 26, 2017, the stock price plummeted approximately 90%. By selling before the announcement, Cameron Collins and others avoided more than $768,000 in losses. Chris Collins himself could not sell his shares without triggering obvious suspicion given his position, so he absorbed the full loss on his holdings.

Arrest and Prosecution

Indictment

On August 8, 2018, Chris Collins and his son Cameron Collins were arrested by the FBI and charged with insider trading and making false statements. Stephen Zarsky was also charged in the scheme.

Despite the indictment, Collins initially refused to resign from Congress and continued his reelection campaign. He won reelection in November 2018, although by a much narrower margin than in previous elections.

Guilty Plea

On September 30, 2019, Collins announced his resignation from Congress, effective October 1. Later that same day, he appeared in federal court and pleaded guilty to conspiracy to commit securities fraud and making a false statement to a federal agent.

Cameron Collins pleaded guilty to conspiracy to commit securities fraud and making false statements to FBI agents. Stephen Zarsky also pleaded guilty.

Sentencing

On January 17, 2020, U.S. District Judge Vernon S. Broderick sentenced Chris Collins to 26 months in federal prison. He was also ordered to pay a $200,000 fine. Cameron Collins was sentenced to 5 months in prison.

Collins reported to Federal Prison Camp Pensacola on October 13, 2020, to begin serving his sentence.

Presidential Pardon

On December 22, 2020, President Donald Trump granted Chris Collins a full pardon. Collins had served approximately two months of his 26-month sentence at the time of the pardon.

The White House statement announcing the pardon stated: "Today, President Trump granted a full pardon to Chris Collins, at the request of many Members of Congress." The statement did not provide further explanation for Trump's decision.

The Collins pardon was part of a batch of 15 pardons announced that day. Two other former congressmen convicted of federal crimes—Duncan Hunter of California and Steve Stockman of Texas—also received clemency from Trump in the same announcement.

Reactions

The pardon was met with criticism from Democrats and some ethics advocates who noted Collins' early political support for Trump. Critics argued the pardon undermined the justice system and rewarded political loyalty over accountability.

Post-Pardon Life

After his pardon, Collins returned to his home in Western New York. In interviews, he has expressed gratitude for the pardon and described his experience in prison as humbling. He has indicated interest in potentially returning to public life.

Frequently Asked Questions

Q: What did Chris Collins do?

Chris Collins was convicted of insider trading and making false statements to the FBI. While at a White House congressional picnic in June 2017, Collins received an email informing him that Innate Immunotherapeutics' experimental drug had failed clinical trials. He immediately called his son Cameron to warn him to sell his shares before the news became public. Cameron and others sold their shares, avoiding significant losses when the stock dropped 90%. Collins pleaded guilty in October 2019 and was sentenced to 26 months in prison.

Q: Was Chris Collins pardoned?

Yes. On December 22, 2020, President Trump granted Collins a full presidential pardon. Collins had served approximately two months of his 26-month sentence at FPC Pensacola when he was pardoned. The White House said the pardon came "at the request of many Members of Congress." Collins was the first sitting congressman to endorse Trump's 2016 presidential campaign.

Q: How long was Chris Collins' prison sentence?

Collins was sentenced to 26 months in federal prison on January 17, 2020. He began serving his sentence at Federal Prison Camp Pensacola on October 13, 2020. However, he served only about two months before being pardoned by President Trump on December 22, 2020.

Q: Who else was convicted in the Chris Collins case?

Collins' son Cameron Collins and Stephen Zarsky (the father of Cameron's fiancée) were also convicted. Cameron pleaded guilty to conspiracy to commit securities fraud and making false statements, receiving a 5-month sentence. Zarsky also pleaded guilty. The family members sold their Innate Immunotherapeutics shares after being tipped off by Cameron before the stock price collapsed.

Q: What was Chris Collins' political career?

Collins served as U.S. Representative for New York's 27th Congressional District from 2013 to 2019. He was previously Erie County Executive from 2007 to 2011. He was the first sitting member of Congress to endorse Donald Trump for president in 2016 and served on Trump's transition team. He resigned from Congress on September 30, 2019, the same day he pleaded guilty.

See also

• Securities Fraud
• Presidential Clemency and Pardons
• Duncan Hunter
• Steve Stockman