Collins didn’t gather the inside information in Congress — that would violate the 2012 Stock Act, which made it illegal for members and their staff to trade on privileged knowledge having to do with ongoing legislation. Rather, if prosecutors are correct, he exploited his position as a director of Innate Immunotherapeutics Ltd. In that role, in June of last year, Collins learned that disappointing results from clinical drug trials would soon drive down the value of the company’s stock.
Which brings up an obvious question: Why is a member of Congress permitted to serve as a board director of a for-profit company? What could possibly justify such a blatant conflict of interest?
via The Congressional Guide to Insider Trading – Bloomberg.
