Inside the courtroom, Collins confirmed he received the information from his father and knew it was “wrong and illegal.” "I truly regret my conduct", said Collins.
Earlier this week, Chris Collins pleaded guilty in his insider trading case and will be sentenced in January 2020.
The charges stem from Collins’ business ties with Innate Immunotherapeutics Ltd., a biotechnology company headquartered in Sydney, Australia. He was the company’s largest shareholder, with nearly 17% of its shares, and sat on its board.
According to the indictment, Collins was attending the Congressional Picnic at the White House on June 22, 2017, when he received an email from the company’s chief executive saying that a trial of a drug the company developed to treat multiple sclerosis was a clinical failure.
Collins responded to the email saying: “Wow. Makes no sense. How are these results even possible???” the indictment said.
It said he then called his son, Cameron Collins, and, after several missed calls, they spoke for more than six minutes.
Cameron Collins also spoke, McKinley says more matter of factly. "He said he understood it was illegal to pass the information along. He passed it to loved ones and friends. He sold it to avoid losses, and it's alleged Collins staved off a loss of a half million dollars as the stock was about to tank," says McKinley.
The sentencing recommendation is three to four years, but first a judge will look over a probation report. "First, they have to meet with the probation department, which will prepare a thorough report, which the judge indicated he will rely heavily on in determining the sentence," explains McKinley, adding the judge can go below or above the sentencing guidelines.
With Collins’ departure, it will be up to Democratic Gov. Andrew Cuomo to set a special election to replace him. The governor has said the timing remains uncertain for an election that's expected to now draw even more candidates to an already crowded field.