Zinger Key Points
- A former member of Congress who served time in prison for insider trading could be eyeing a return to Congress.
- The potential election of the former representative could put an increased spotlight on trading in Congress.
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Increased attention has been placed on the trading history of stocks, options and cryptocurrencies by members of Congress, with members of the public and Congress itself fighting to ban the act of Congress trading.
A former member of Congress convicted of insider trading could be running for re-election to come back.
What Happened: For several years, renewed focus has been put on the trading activity of members of Congress, with committee assignments and the role of spouses in the conversation.
Former Rep. Chris Collins (R-N.Y.) was convicted of insider trading in 2020 related to his position in the company formerly known as Innate Immunotherapeutics, which he served on the board of directors. Collins phoned his son from the White House lawn to tell him to sell the stock before a public announcement was made about a failed clinical trial for one of Innate's drugs. Collins was later found to have lied to the FBI about the case.
"Collin's greed and disregard for the law have now led to a criminal conviction for insider trading and lying to the FBI, his resignation from Congress, and over two years in federal prison," U.S. Attorney Geoffrey S. Berman said at the time.
Collins was sentenced to prison, one year of supervised release and a fine of $200,000.
The former Congressman was later pardoned by President Donald Trump and was released from prison. Collins previously endorsed Trump for president and served on his transition team for the 2016 presidential election.
As highlighted by Quiver Quant, Collins is exploring a potential return to Congress via the 2024 election. Collins told local Florida media earlier this year he was assembling a team to explore a run for the 19th Congressional District of Florida.
Collins, who now resides in Florida, would become the first member of Congress to represent two different states over the past 55 years.
The former congressman has not filed to run and said his potential run would be determined if Rep. Byron Donalds (R-Fla.) steps aside in a potential run for U.S. Senate or the Florida governor election in 2026.
Related Link: 10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)
Why It's Important: While Collins has not officially declared his name as a candidate in the 2024 election, a potential run could put an increased spotlight on congressional trading.
While several members of Congress have been criticized for trades of stocks made by themselves or spouses that they may have had inside information on thanks to news and political committees, Collins was convicted of insider trading.
The FBI determined that the phone call made by Collins to his son helped several individuals who were informed ahead of time of the clinical trial avoid potential losses of over $768,000.
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