WEOS Finger Lakes Public Radio

The SEC assesses penalties in the Chris Collins case

Aug 9, 2018
Originally published on August 8, 2018 5:11 pm

On the same day that the U.S. Attorney’s Office in New York City announced insider trading charges against Congressman Chris Collins, the Securities and Exchange Commission also  announced the filing of civil charges against the Western NY Republican, as well as his son, Cameron Collins, and a third individual, Stephen Zarsky.

The SEC complaint seeks penalties, and permanent injunctions against Collins.  It also seeks to bar him from being an officer or director of a public company.

Here is part of the statement from the SEC:

"The SEC also announced settled charges today against Lauren Zarsky, Cameron Collins’ girlfriend, and her mother, Dorothy Zarsky, for trading on the basis of material, nonpublic information. Lauren Zarsky and Dorothy Zarsky consented to the entry of final judgments without admitting or denying the charges that they sold their shares of Innate based on tips they received from Cameron Collins. 

Lauren Zarsky agreed to disgorge her ill-gotten gains of $19,440, plus prejudgment interest of $839, and pay a civil penalty of $19,440.

Dorothy Zarsky agreed to disgorge her ill-gotten gains of $22,600, plus prejudgment interest of $975, and pay a civil penalty of $22,600. The final judgments, which require court approval, would enjoin Lauren Zarsky and Dorothy Zarsky from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933. Lauren Zarsky, a CPA, has also agreed to be suspended from appearing or practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies.

The SEC’s order permits Zarsky to apply for reinstatement after five years."

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