Rep. Christopher Collins, a Republican congressman from New York, was arrested Wednesday and charged with insider trading related to an Australian biotechnology company.

Federal prosecutors in Manhattan accused Mr. Collins of sharing with his son the results of a failed drug trial completed by Innate Immunotherapeutics Ltd. , a biotechnology company headquartered in Sydney. Mr. Collins was a member of Innate’s board of directors and one of the company’s largest shareholders, the indictment said.

Chris Collins of Rocheser, NY Indicted by Syndicated News SNN.BZ on Scribd

Mr. Collins allegedly passed material non-public information about the drug trial results to his son, Cameron Collins, so that he could trade on the tip. Prosecutors say his son then passed the information onto his fiancée’s father, Stephen Zarsky, who tipped off other alleged co-conspirators before the public release of the trial results.

Cameron Collins and Mr. Zarsky were also charged Wednesday.

Lawyers for the three men could not immediately be identified.

In total, the trades allowed the defendants and alleged co-conspirators to avoid more than $768,000 in losses, the indictment said.

Mr. Collins was the first member of Congress to endorse President Trump during the 2016 campaign, an important distinction with a president who prizes loyalty. Once considered a backbencher in the House, Mr. Collins’ stature has grown since Mr. Trump won the GOP nomination.


 

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