On December 9, 2019, the Securities and Exchange Commission announced settlements with former U.S. Rep. Christopher Collins, his son Cameron Collins, and Stephen Zarsky, all of whom were charged with insider trading and pleaded guilty to related criminal charges. The settlements, which are subject to court approval, bar Christopher Collins from serving as an officer or director of a public company and require Cameron Collins and Stephen Zarsky to disgorge the losses they avoided as a result of their insider trading.

According to the SEC's 2018 complaint, Christopher Collins tipped his son, who then tipped others to non-public negative trial results for a multiple sclerosis drug developed by Australian biotech company Innate Immunotherapeutics Ltd. The complaint alleged that Christopher Collins, then an independent director on Innate's board, learned of the results from Innate's CEO and then spoke to his son Cameron Collins, who traded on the information and tipped others, including his then-girlfriend's father, Stephen Zarsky. Cameron Collins and Stephen Zarsky together sold nearly 1.7 million Innate shares in advance of Innate's public announcement of the negative results, avoiding combined losses of more than $700,000.

The three defendants consented to the entry of final judgments that would resolve all claims and permanently enjoin them from violating Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933. Christopher Collins consented to be permanently barred from acting as an officer or director of any public company. Cameron Collins and Stephen Zarsky agreed to disgorge their avoided losses with prejudgment interest, totaling $634,299 and $159,880, respectively. The settlements are subject to the approval of the Honorable Katherine Polk Failla of the U.S. District Court for the Southern District of New York.

The SEC's investigation was conducted by Wm. Max Hathaway, Colby A. Steele, and Patrick McCluskey in the Enforcement Division's Market Abuse Unit. The case was supervised by Joseph G. Sansone, Chief of the Market Abuse Unit, and Carolyn M. Welshhans. The litigation was led by Melissa Armstrong. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation.