Government accountability groups are backing a resolution, to prohibit members of Congress from serving on the boards of publicly held companies.
In response to the indictment of their fellow New Yorker Chris Collins, the pair introduced a measure to create a House version of Senate Rule 37.6(a), which states that no senator “shall serve as an officer or member of the board of any publicly-held or publicly regulated corporation, financial institution, or business entity.”
Collins was arrested Aug. 8 on charges of insider trading and securities fraud related to an Australian biotechnology company, Innate Immunotherapeutics. Collins is the company’s largest shareholder and serves on its board of directors. The indictment alleges that Collins passed nonpublic information about Innate’s drug trial results to his son to help him “make timely trades in Innate stock and tip others.”
In total, the three defendants in the Collins avoided “over $768,000 in losses that they would have otherwise incurred” had they sold their stock after the information was made public, according to the indictment.
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