Innate's only drug - a multiple sclerosis drug known as MIS416 - had the potential to make billions of dollars. But, it bombed its clinical trial in June, 2017, having shown no meaningful difference to the placebo. Its value plunged 92 per cent when the news was made public. According to the indictment, Collins, a member of Innate's board of directors and one of its largest shareholders, had access to non-public information about the development of MIS416. Chris Collins leaves a New York court on $500,000 bail on Wednesday. Credit:Bloomberg The congressman allegedly tipped his son off to the trial results before they became public, which he then passed to others including Zarsky and Zarsky's wife, allowing them to avoid more than $US768,000 ($1.03 million) in losses. On June 23 (Australian time), Innate requested that the ASX halt trading in the company's stocks until July 27, when it would announce the trial results. The halt did not affect trading in the US.

Loading Hours after the halt began, Innate's chief executive sent an email to the board of directors, including Collins, announcing that the trial had failed. "I have bad news to report," the email began. Collins, who was at a picnic for congressional families at the White House, replied: "Wow. Makes no sense. How are these results even possible???" Over the next 15 minutes, his phone rang hot. He made four phone calls to his son Cameron, and his son made three calls back to him, the indictment says.

The first six calls were missed however the last call, at 7.16pm, lasted six minutes. In it, Collins "conveyed... non-public information... knowing that he was in breach of his duties and anticipating that Cameron Collins would use it to trade and tip others," the indictment alleges. The trial failure was "devastating information," Berman said. "Congressman Collins had an obligation, a legal duty to keep that information secret until that information was released by the company to the public. But he didn't keep it secret. Instead, as alleged, he decided to commit a crime. He placed his family and his friends above the public good." Collins did not trade his own stocks, which were held in Australia and subject to the trading halt. He was also already under investigation by the Congressional Ethics Office.

Chris Collins (on left) at the congressional picnic on the White House south lawn on June 22, the event at which he allegedly engaged in insider trading. Credit:Instagram/RepChrisCollins However, his son sold his US-based stocks, disposing of 1.39 million shares over three days before the June 27 announcement that the drug trial had failed. After the 7.16 pm call from his father, Cameron Collins and his fiancé drove to Zarksy's house, arriving at 9.17pm. At 9.34pm, Zarsky's wife allegedly called their broker with instructions to sell their shares. (Zarsky also allegedly tipped off his brother, his sister, and a close friend, who had all invested in Innate.) Loading At a brief arraignment in New York on Wednesday, Collins, his son and Zarsky entered not guilty pleas. All three had bail set at $US500,000.

Innate Immunotherapeutics said in a statement on Thursday that it was not under investigation. The company said it had cooperated fully with requests for information from the US Securities and Exchange Commission (SEC). "The Company and its directors/officers (excepting Mr. Collins) are not under investigation," the statement said. "The Company considers the ongoing investigation to be a private matter to Mr. Collins." It said Collins retired as a director of Innate in early May and was no longer involved with the governance of the company. Collins released a short statement on Twitter saying: "The charges being brought against me are meritless and I intend to fight to clear my name. I will continue to work hard for the people of #NY27 and earn your vote this November." In a short statement on Wednesday night, Collins said he first invested in Innate 15 years ago when the company was working towards an HIV cure. It was one of several companies he invested in, part of a track record of supporting, and turning around, struggling businesses and public agencies.

Innate later changed its mission to finding a cure for secondary progressive multiple sclerosis which, he said, affected a close family member. By mid-2017, he had recommended the company to friends, colleagues and relatives. The Daily Beast reported that almost 30 per cent of Innate was owned by Collins or his associates including his two children, four campaign donors, and his chief of staff, and six Republican congressman. Republican Congressman Chris Collins (right) pictured with Donald Trump. Collins has been arrested by the FBI. Credit:AP "Without my investments and steadfast financial support, the company would have gone under," he said on Wednesday. "Of all the things I wanted to accomplish in my life, finding a cure for secondary progressive MS was at the top of my list. After years of blood, sweat and tears we firmly believed we were on the verge of a medical breakthrough." Collins didn't address allegations of tipping off his son. He said he lost millions because he didn't sell his own shares.

"That's ok, that's the risk I took," he said. "I may have lost most of my money I invested... but I took the chance to bring relief to those who deal with the dreadful disease." Collins, 68, has been one of the Trump's most ardent and outspoken supporters in the House. He has also very publicly boasted of his ties to the President and the benefits he could bestow. Reporters overheard him near the House floor earlier this year talking on the phone and proclaiming he'd created millionaires in his home town of Buffalo through a stock tip.

House speaker Paul Ryan said Collins would be removed from the House Energy and Commerce Committee "until this matter is settled". Collins' attorneys Jonathan Barr and Jonathan New said Collins will "mount a vigorous defence to clear his good name". "It is notable that even the government does not allege that Congressman Collins traded a single share of Innate Therapeutics stock. We are confident he will be completely vindicated and exonerated," they said. with Nassim Khadem, wires