After Rep. Chris Collins (R-N.Y.) was indicted for insider trading, Reps. Kathleen Rice (D-N.Y.) and Tom Reed (R-N.Y.) plan to introduce a resolution that would bar members of the House of Representatives from serving on public company boards. The resolution would reflect similar injunctions in the Senate, which prohibits senators from sitting as an officer or board member for any publicly-held or regulated business entity. Reps. Rice and Reed said the rules must be changed to improve the public’s trust in Congress, and that the American people are owed fair assurance.
Rep. Collins was charged on August 8 for allegedly sharing confidential information on a failed drug trial at Innate Immunotherapeutics Ltd. He also sat on the Australian biotech company’s board and owned 17 percent of its shares. Federal prosecutors claim that Collins told his son, Cameron, about the failed drug trial before the news went public, in which Cameron used the tip to trade company shares and warn others.
Cameron and Stephen Zarsky, the father of Cameron’s fiancée, were also charged. Rep. Collins denies any wrongdoing, but he suspended his re-election bid.