According to the SEC’s complaint, Christopher Collins tipped his son, who then tipped others to non-public negative trial results for a multiple sclerosis drug developed by Australian biotech company Innate Immunotherapeutics Ltd. The complaint alleged that Christopher Collins, then an independent director on Innate’s board, learned of the results from Innate’s CEO and then spoke to his son Cameron Collins, who traded on the information and tipped others, including his then-girlfriend’s father, Stephen Zarsky. Cameron Collins and Stephen Zarsky together sold nearly 1.7 million Innate shares in advance of Innate’s public announcement of the negative results, avoiding combined losses of more than $700,000.

Stephanie Avakian
Stephanie Avakian Stephanie Avakian – Co-Director of the SEC’s Enforcement Division

“Insider trading undermines investor confidence in the fairness and integrity of the securities markets,” said Stephanie Avakian, Co-Director of the Enforcement Division. “Today’s settlements, along with the previous criminal pleas, should deter others who may be tempted to engage in this pernicious conduct.”

“Our complaint alleged in detail how the defendants obtained and misused material nonpublic information for their own financial and personal gain,” said Steven Peikin, Co-Director of the Enforcement Division. “Upon approval, this resolution will strip former Representative Collins of the privilege of serving as an officer or director of a public company and ensure that the traders are deprived of their ill-gotten gains.”

The three defendants consented to the entry of final judgments that would resolve all claims and permanently enjoin them from violating antifraud provisions of the securities laws. Christopher Collins consented to be permanently barred from acting as an officer or director of any public company. Cameron Collins and Stephen Zarsky agreed to disgorge their avoided losses with prejudgment interest, totaling $634,299 and $159,880, respectively. The settlements are subject to the approval of the Honorable Katherine Polk Failla of the U.S. District Court for the Southern District of New York.

The SEC’s investigation was conducted by Wm. Max Hathaway, Colby A. Steele, and Patrick McCluskey in the Enforcement Division’s Market Abuse Unit. The case was supervised by Joseph G. Sansone, Chief of the Market Abuse Unit, and Carolyn M. Welshhans. The litigation was led by Melissa Armstrong. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation.