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Thu Aug 9, 2018, 03:42 PM

Houston congressman sold biotech stock 10 days before insider trading case came to a head

Houston congressman sold biotech stock 10 days before insider trading case came to a head
Photo of Kevin Diaz
Kevin Diaz Aug. 8, 2018 Updated: Aug. 8, 2018 10:13 p.m.

https://www.houstonchronicle.com/news/politics/article/Houston-congressman-sold-biotech-stock-10-days-13141804.php



WASHINGTON – Ten days before the crash of an obscure Australian biotech stock at the center of Wednesday's federal indictment of New York Republican Rep. Chris Collins, Houston Republican John Culberson quietly sold all his shares.



The Innate Immunotherapeutics stock, which Culberson sold on June 12, 2017, for about AU$7.35 a share, was worth less than 5 cents a share two weeks later on news of a failed clinical test for an experimental drug to treat multiple sclerosis.


Culberson and fellow Texas Republican Mike Conaway were among a half dozen House members who bought stock in the company in early 2017, some reportedly at the behest of Collins, Innate's biggest shareholder and a company director.

Also among those who bought in: Former Health and Human Services Secretary Tom Price, who also reportedly sold before the crash.







A timeline of the indictment shows that the crucial events transpired on June 22, just before Innate's stock price tanked to pennies on the dollar. That was also ten days after Culberson bailed. The results of the clinical test were made public four days later on June 26, prosecutors allege.





"Today's indictment raises serious questions," Fletcher said in a statement Wednesday. "Congressman Culberson must explain why he, along with a small group of Republican lawmakers, bought stock in an obscure Australian biopharmaceutical company that is at the center of an insider trading scandal. If Congressman Culberson used his position of power, along with access to material non-public information, in an effort to benefit himself personally then Congressman Culberson will have confirmed he is exactly what is wrong with Washington."



I bet they find 12 more GOP Reps. Anyone want to cover that bet?

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Reply Houston congressman sold biotech stock 10 days before insider trading case came to a head (Original post)
bobsal Thursday OP
Ruby Thursday #1
Valishin Thursday #4
Ruby Thursday #7
RCW2014 Thursday #8
Ruby Thursday #9
Solesurvivor Thursday #2
Independent.mind Thursday #3
R. Cavu Thursday #5
GoldwatersSoul Thursday #6

Response to bobsal (Original post)

Thu Aug 9, 2018, 03:51 PM

1. Doesnt matter. Its not illegal for house members to trade on insider info.

Collins is only in trouble because he’s the tipper. House tippees have nothing to worry about. Legally, anyway.

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Response to Ruby (Reply #1)

Thu Aug 9, 2018, 04:13 PM

4. And if their lawyers are any good

they will cover his butt saying he gave away information inadvertently by being overly tense or strangely avoiding topics in some conversation on the subject which led them to believe something was up or other such and such nonsense. Minus a recording, written evidence, or a snitch these types of things are next to impossible to prove. Although he probably is guilty, my guess is that kind of thing happens far more often than we are even inclined to believe.

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Response to Valishin (Reply #4)

Thu Aug 9, 2018, 04:57 PM

7. I bet it happens all the time.

Based on the indictment though it seems Collins was super blatant about it. Calling his son six times from the White House picnic immediately after learning the trial failed is shady as hell. I’m not sure any jury would believe that this whole thing is a serious of coincidences even if the prosecutions whole case is circumstantial.

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Response to Ruby (Reply #1)

Thu Aug 9, 2018, 04:59 PM

8. Seems you are wrong according to this piece by the SEC, of course I'm sure you will claim

your knowledge is superior...

INSIDER TRADING

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.

Examples of insider trading cases that have been brought by the SEC are cases against:

•Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;

•Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;

•Employees of law, banking, brokerage and printing firms who traded based on information they obtained in connection with providing services to the corporation whose securities they traded;

•Government employees who traded based on confidential information they learned because of their employment with the government;

•Political intelligence consultants who may tip or trade based on material, nonpublic information they obtain from government employees; and

•Other persons who misappropriated, and took advantage of, confidential information from their employers, family, friends, and others.

Because insider trading undermines investor confidence in the fairness and integrity of the securities markets, the SEC has treated the detection and prosecution of insider trading violations as one of its enforcement priorities.

more...

https://www.investor.gov/additional-resources/general-resources/glossary/insider-trading

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Response to RCW2014 (Reply #8)

Thu Aug 9, 2018, 05:18 PM

9. If thats the case Im sure there are some very worried people right now.

Why the hell would I claim superior knowledge?! If I’m wrong on something, I’m wrong.

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Response to bobsal (Original post)

Thu Aug 9, 2018, 03:56 PM

2. I hope you post this much the next time a democrat breaks the law :)

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Response to Solesurvivor (Reply #2)

Thu Aug 9, 2018, 04:00 PM

3. You forgot the

Besides Hillary part of your post.

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Response to bobsal (Original post)

Thu Aug 9, 2018, 04:15 PM

5. Why 12

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Response to bobsal (Original post)

Thu Aug 9, 2018, 04:16 PM

6. Shouldnt be illegal...

insider trading is only illegal in the US.

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