Federal goons showed up at the house of Rep. Chris Collins (R-NY) today in order to arrest the Congress on insider trading charges that seem rather dubious.
The charges stem from Collins’ involvement with Innate Immunotherapeutics, a pharmaceutical company based out of Australia. He, his son, and father-in-law to be all owned significant shares of the company’s stock with Collins being the primary shareholder. All three men have been charged with conspiracy to commit securities fraud by the U.S. Attorney’s Office in the Southern District of New York.
“Representative Collins, who, by virtue of his office, helps write the laws of this country, acted as if the law did not apply to him,” U.S. Attorney Jeffrey Berman said at a press conference. “These charges are a reminder that this is a nation of laws, and everyone stands equal before the bar of justice.”
The charges stem from a string of phone calls placed between Collins, his son Cameron and other alleged co-conspirators after a drug trial failure. They supposedly dumped considerable shares of stock before knowledge of the drug trial failure went public.
Collins is not taking this lying down and intends to fight for his innocence against politically-motived charges coming as the result of a partisan conspiracy to hurt the Republicans and President Trump in the run up to crucial mid-term elections in November.
“We will answer the charges filed against Congressman Collins in Court and will mount a vigorous defense to clear his good name,” they said. “It is notable that even the government does not allege that Congressman Collins traded a single share of Innate Therapeutics [sic] stock. We are confident he will be completely vindicated and exonerated.”
Despite the fact that he never even traded the stock after learning of the drug trial failure, Collins is being prosecuted anyway. The alleged “crime” of insider trading should not be a criminal act at all, according to certain free market economists.
Bob Murphy at the Mises Institute explains further:
“In general, speculators perform a useful social service when they are profitable. By buying low and selling high (or by short-selling high and covering low), stock speculators actually speed up price adjustments and make stock prices less volatile than they otherwise would be…
Even though we can look at any particular transaction and tally up the “winners” and “losers,” the presence of speculators enhances the overall functioning of the stock market. For example, the market for any particular security is more liquid when there are rich speculators who will quickly pounce on a perceived mistake in pricing. If an institutional investor (such as a firm managing pensions) suddenly has a cash crunch and needs to dump its holdings, speculators will swoop in and put a floor under the fire-sale price. This is good for the beleaguered pension fund, and for the stock market in general.
Crackdowns on insider trading are harmful because they chill the cultivation of superior knowledge and speculative correction of market prices. Beyond this loss of general economic efficiency, insider-trading laws are insidious because of the arbitrary power they give to government officials.”
In addition, members of Congress have openly committed insider trading for many years. A phony “reform” was signed into law by former President Obama, but it is very easy to work around. This is one of the ways Congressmen become multimillionaires after obtaining office despite a meager annual salary of taxpayer dollars.
Yet again, corrupt federal prosecutors are making a mockery of justice and using blatant double-standards as they continue the deep state’s crusade to destroy President Trump’s ‘America First’ agenda and the Republican Congress.