Bill would ban House members from serving on boards of publicly held companies

Bill would ban House members from serving on boards of publicly held companies
© Greg Nash

Two lawmakers introduced legislation Thursday to ban House members from serving as board members for publicly traded companies following the arrest of Rep. Chris CollinsChristopher (Chris) Carl CollinsBiden taps Damian Williams as US attorney for Manhattan New York lt. gov. says she is 'prepared to lead' following Cuomo resignation Outrage grows as Justice seeks to contain subpoena fallout MORE (R-N.Y.) for alleged insider trading.

The resolution from New York Reps. Tom ReedTom ReedLawmakers who bucked their parties on the T infrastructure bill Democratic retirements could make a tough midterm year even worse The Hill's Morning Report - Presented by Alibaba - Democrats argue price before policy amid scramble MORE (R) and Kathleen RiceKathleen Maura RiceFive takeaways: House passes Biden's sweeping benefits bill Dems brace for score on massive Biden bill Democrats bullish they'll reach finish line this week MORE (D) would amend House rules to mirror a Senate provision banning lawmakers from sitting on the boards of “any publicly-held or publicly regulated corporation, financial institution, or business entity.”

“There should never be a doubt in the public’s mind to lead them to think their Representative could be corrupted or incriminated because of their stake or position in a private company,” the lawmakers said in a statement. “We owe the American people this fair assurance.”

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Collins was arrested Wednesday and charged with securities fraud, wire fraud and making false statements to federal agents related to his seat on the board of an Australian pharmaceutical company.

He was the only member of the House to serve as a board member for a public company, and did so as a member of the House Energy and Commerce Committee, which oversees the pharmaceutical industry.

Collins served as a board member for Innate Immunotherapeutics, a Sydney-based firm that tried to develop a drug to fight advanced multiple sclerosis. He was also Innate’s largest shareholder.

The three-term congressman is alleged to have shared confidential news that the drug failed clinical trials with his son, Cameron Collins, spurring a series of insider trades that saved his family and friends more than $750,000 in stock losses. Collins, who was unable to sell his own shares of Innate, reportedly lost up to $17 million when news of the failed trials was announced in June 2017.

“Congressman Collins — who by virtue of his office helps to write the laws of our nation — acted as if the law didn't apply to him,” said Geoff Berman, U.S. attorney for the Southern District of New York, at a Wednesday press conference.

Cameron Collins and Stephen Zarsky, the father of Cameron’s fiancee, were also charged with securities fraud, wire fraud and making false statements to federal agents.

Collins, the first lawmaker to endorse President TrumpDonald TrumpJan. 6 panel faces double-edged sword with Alex Jones, Roger Stone Trump goes after Woodward, Costa over China Republicans seem set to win the midterms — unless they defeat themselves MORE, called the charges against him “baseless” Wednesday and said he would continue his re-election campaign.

“As I fight to clear my name, rest assured, I will continue to work hard for the people and constituents of the 27th Congressional District of New York, and I will remain on the ballot running for reelection this November,” he said at a brief press appearance, where he also promised he would be exonerated from all charges.

Collins represents a deeply Republican western New York district where Trump beat Democratic nominee Hillary ClintonHillary Diane Rodham ClintonRepublicans seem set to win the midterms — unless they defeat themselves Poll: Democracy is under attack, and more violence may be the future Popping the progressive bubble MORE by more than 24 points in the 2016 presidential election. But his arrest and indictment have energized Democrats seeking to flip the seat.