CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
OFFICE OF CONGRESSIONAL ETHICS
UNITED STATES HOUSE OF REPRESENTATIVES

REPORT
Review No. 17-3509

The Board of the Office of Congressional Ethics (the Board), by a vote of no less than four
members, on July 7, 2017, adopted the following report and ordered it to be transmitted to the
Committee on Ethics of the United States House of Representatives.
SUBJECT: Representative Chris Collins
NATURE OF THE ALLEGED VIOLATION: Representative Collins is a board member of
Innate Immunotherapeutics Limited (Innate) and holds stock in the company. Representative
Collins may have shared material nonpublic information in the purchase of Innate stock. If
Representative Collins shared material nonpublic information in the purchase of Innate stock,
then he may have violated House rules, standards of conduct, and federal law.
Representative Collins may have also purchased discounted Innate stock that was not available
to the public and that was offered to him based on his status as a Member of the House of
Representatives. If Representative Collins purchased discounted stock that was not available to
the public and that was offered to him based on his status as a Member of the House of
Representatives, then he may have violated House rules, standards of conduct, and federal law.
Representative Collins attended a meeting at the National Institutes of Health (NIH) in
November 2013. In that meeting, Representative Collins discussed Innate and requested that an
NIH employee meet with Innate employees to discuss clinical trial designs. If Representative
Collins took official actions or requested official actions that would assist a single entity in
which he had a significant financial interest, then he may have violated House rules and
standards of conduct.
RECOMMENDATION: The Board recommends that the Committee on Ethics further review
the above allegation because there is a substantial reason to believe that Representative Collins
shared material nonpublic information in the purchase of Innate stock, in violation of House
rules, standards of conduct, and federal law.
The Board recommends that the Committee on Ethics dismiss the above allegation because there
is not a substantial reason to believe that Representative Collins purchased discounted stock that
was not available to the public and that was offered to him based on his status as a Member of
the House of Representatives, in violation of House rules, standards of conduct, and federal law.

Page 1 of 29
 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
The Board recommends that the Committee on Ethics further review the above allegation
because there is a substantial reason to believe that Representative Collins took official actions or
requested official actions that would assist a single entity in which he had a significant financial
interest, in violation of House rules and standards of conduct.
VOTES IN THE AFFIRMATIVE: 6

VOTES IN THE NEGATIVE: 0

ABSTENTIONS: 0

MEMBER OF THE BOARD OR STAFF DESIGNATED TO PRESENT THIS REPORT TO

THE COMMITTEE ON ETHICS: Omar S. Ashmawy, Staff Director & Chief Counsel.

Page 2 of 29
 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended

FINDINGS OF FACT AND CITATIONS TO LAW

TABLE OF CONTENTS
I. INTRODUCTION .............................................................................................................. 4
A. Summary of Allegations................................................................................................... 4
B. Jurisdiction Statement ...................................................................................................... 5
C. Procedural History............................................................................................................ 5
D. Summary of Investigative Activity .................................................................................. 6
II. REPRESENTATIVE COLLINS AND THE SHARING OF INNATE MATERIAL
NONPUBLIC INFORMATION ....................................................................................... 7
A. Applicable Law, Rules, and Standards of Conduct .......................................................... 7
B. Representative Collins Connection to Innate .................................................................. 7
C. Representative Collins Updated Innate Shareholders With Information That Was Public
and Information That Was Likely Nonpublic ................................................................ 11
D. The Nonpublic Information Representative Collins Shared With Innate Investors May
Have Been Material ....................................................................................................... 18
III. REPRESENTATIVE COLLINS AND INNATES PRIVATE PLACEMENT
OFFERINGS ..................................................................................................................... 20
A. Applicable Law, Rules, and Standards of Conduct ........................................................ 20
B. Innate Offered a Private Placement to Qualified U.S. Investors That Was Unrelated to
Congressional Status ...................................................................................................... 20
IV. REPRESENTATIVE COLLINS MEETINGS WITH NIH EMPLOYEES
REGARDING INNATE .................................................................................................. 22
A. Applicable Law, Rules, and Standards of Conduct ........................................................ 22
B. Representative Collins Was Invited to the NIH During a July 2013 Science, Space, &
Technology Committee Hearing .................................................................................... 23
C. Representative Collins Had a Meeting With NIH Employees That Was Scheduled and
Staffed by His Congressional Office ............................................................................. 24
D. Representative Collins Discussed Innate With the NIH Employees and Requested That
an NIH Researcher Meet With Innates Chief Scientific Officer .................................. 27
V. CONCLUSION ................................................................................................................. 28
VI. INFORMATION THAT THE OCE WAS UNABLE TO OBTAIN AND
RECOMMENDATIONS FOR THE ISSUANCE OF SUBPOENAS ......................... 29

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
OFFICE OF CONGRESSIONAL ETHICS
UNITED STATES HOUSE OF REPRESENTATIVES

FINDINGS OF FACT AND CITATIONS TO LAW

Review No. 17-3509
On July 7, 2017, the Board of the Office of Congressional Ethics (the Board) adopted the
following findings of fact and accompanying citations to law, regulations, rules and standards of
conduct (in italics). The Board notes that these findings do not constitute a determination of
whether or not a violation actually occurred.
I. INTRODUCTION

A. Summary of Allegations

1. Representative Collins is a board member of Innate Immunotherapeutics Limited

(Innate) and holds stock in the company. Representative Collins may have shared
material nonpublic information in the purchase of Innate stock. If Representative Collins
shared material nonpublic information in the purchase of Innate stock, then he may have
violated House rules, standards of conduct, and federal law.

2. Representative Collins may have also purchased discounted Innate stock that was not
available to the public and that was offered to him based on his status as a Member of the
House of Representatives. If Representative Collins purchased discounted stock that was
not available to the public and that was offered to him based on his status as a Member of
the House of Representatives, then he may have violated House rules, standards of
conduct, and federal law.

3. Representative Collins attended a meeting at the National Institutes of Health (NIH) in

November 2013. In that meeting, Representative Collins discussed Innate and requested
that an NIH employee meet with Innate employees to assist in Innates trial designs. If
Representative Collins took official actions that would assist a single entity in which he
had a significant financial interest, then he may have violated House rules and standards
of conduct.

4. The Board recommends that the Committee on Ethics further review the above allegation
because there is a substantial reason to believe that Representative Collins shared
material nonpublic information in the purchase of Innate stock, in violation of House
rules, standards of conduct, and federal law.

5. The Board recommends that the Committee on Ethics dismiss the above allegation
because there is not a substantial reason to believe that Representative Collins purchased
discounted stock that was not available to the public and that was offered to him based on
his status as a Member of the House of Representatives, in violation of House rules,
standards of conduct, and federal law.

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
6. The Board recommends that the Committee on Ethics further review the above allegation
because there is a substantial reason to believe that Representative Collins took official
actions or requested official actions that would assist a single entity in which he had a
significant financial interest, in violation of House rules and standards of conduct.

B. Jurisdiction Statement

7. The allegations that were the subject of this review concern Representative Collins, a
Member of the United States House of Representatives from the 27th District of New
York. The Resolution the United States House of Representatives adopted creating the
Office of Congressional Ethics (the OCE) directs that, [n]o review shall be
undertaken by the board of any alleged violation that occurred before the date of
adoption of this resolution.1 The House adopted this Resolution on March 11, 2008.
Because the conduct under review occurred after March 11, 2008, review by the Board is
in accordance with the Resolution.

C. Procedural History

8. The OCE received a written request for preliminary review in this matter signed by at
least two members of the Board on March 8, 2017. The preliminary review commenced
on March 9, 2017.2 The preliminary review was scheduled to end on April 7, 2017.

9. On March 10, 2017, the OCE notified Representative Collins of the initiation of the
preliminary review, provided him with a statement of the nature of the review, notified
him of his right to be represented by counsel in this matter, and notified him that
invoking his right to counsel would not be held negatively against him.
10. At least three members of the Board voted to initiate a second-phase review in this matter
on April 7, 2017.3 The second-phase review commenced on April 8, 2017. The second-
phase review was scheduled to end on May 22, 2017.
11. On April 10, 2017, the OCE notified Representative Collins of the initiation of the
second-phase review, notified him of his right to be represented by counsel in this matter,
and notified him that invoking his right to counsel would not be held negatively against
him.
12. On May 5, 2017, the Board voted to extend the second-phase review by an additional 14
days.

1
H. Res. 895, 110th Cong. 1(e) (2008) (as amended) (the Resolution).
2
According to the Resolution, the timeframe for conducting a preliminary review is 30 days from the date of receipt
of the Boards request.
3
According to the Resolution, the Board must vote (as opposed to make a written authorization) on whether to
conduct a second-phase review in a matter before the expiration of the 30-day preliminary review. If the Board
votes for a second-phase, the second-phase commences the day after the preliminary review ends. The second-phase
review does not begin on the date of the Board vote.

Page 5 of 29
 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
13. The Board voted to refer the matter to the Committee on Ethics for further review, and
dismissal, and adopted these findings on July 7, 2017.
14. The report and its findings in this matter were transmitted to the Committee on Ethics on
July 14, 2017.
D. Summary of Investigative Activity

15. The OCE requested documentary and in some cases testimonial information from the
following sources:

(1) Representative Collins;

(2) Innate Investor 1;
(3) Innate Investor 2;
(4) Innate Investor 3;
(5) Innate Investor 4;
(6) Roswell Park Cancer Institute;
(7) Roswell Park Cancer Institute Physician 1;
(8) NIH Employee 1; and
(9) NIH Employee 2.

16. The following individuals and entities refused to cooperate with the OCEs review:

(1) Tom Price, Secretary of the Department of Health and Human Services;
(2) Innate;
(3) Simon Wilkinson, Innate Chief Executive Officer;
(4) Jeff Freeland, Representative Collins former Legislative Assistant;
(5) Chris Graham;
(6) Dr. Mark Lema;
(7) William Grove;
(8) Marcia Grove;
(9) L. William Paxon; and
(10) Guy Agostinelli.

Page 6 of 29
 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended

II. REPRESENTATIVE COLLINS AND THE SHARING OF INNATE MATERIAL

NONPUBLIC INFORMATION

A. Applicable Law, Rules, and Standards of Conduct

17. STOCK Act, Pub. L. No. 112-105, 126 Stat. 291 (2012)

(a) AFFIRMATION OF NONEXEMPTIONMembers of Congress and employees of

Congress are not exempt from the insider trading prohibitions arising under the
securities laws, including section 10(b) of the Securities Exchange Act of 1934 and Rule
10b5 thereunder.4

18. Committee on Ethics Guidance

If the Member or employee chooses to trade on [material nonpublic] information, they

may have engaged in insider trading.5 Members and employees could also incur
liability through a practice known as tipping.6

Material nonpublic information is any information concerning a company, security,

industry or economic sector, or real or personal property that is not available to the
general public and which an investor would likely consider important in making an
investment decision. A good rule of thumb to determine whether information may be
material nonpublic information is whether or not the release of that information to the
public would have an effect on the price of the security or property. 7

B. Representative Collins Connection to Innate

19. Prior to his election to Congress, Representative Collins, along with a partner, owned and
managed ZeptoMetrix Corporation (ZeptoMetrix).8 ZeptoMetrix is (and was prior to
Representative Collins election to Congress) a privately held company that grows and

4
See 15 U.S.C 78j(b); 17 C.F.R. 240.10b-5. See also SEC v. Obus, 693 F.3d 276, 286 (2d Cir. 2012) (explaining
the elements of tipper liability); Dirks v. SEC, 463 U.S. 646, 664 (1983) (The elements of fiduciary duty and
exploitation of nonpublic information also exist when an insider makes a gift of confidential information to a trading
relative or friend.). Although Innate stock is not traded on any U.S. exchange, the Dodd-Frank Wall Street Reform
and Consumer Protection Act section 929P extends securities enforcement jurisdiction to conduct within the United
States that constitutes significant steps in furtherance of the violation, even if the securities transaction occurs
outside the United States and involves only foreign investors or conduct occurring outside the United States that
has a foreseeable substantial effect within the United States. See, e.g., SEC v. Traffic Monsoon, LLC, 2017 U.S.
Dist. LEXIS 45908 (D. Utah Mar. 28, 2017); SEC v. Brown, 2015 U.S. Dist. LEXIS 25787 (N.D. Ill. Mar. 4, 2015);
Ulrich v. Moodys Corp., 2014 U.S. Dist. LEXIS 145898 (S.D.N.Y. Mar. 31, 2014).
5
Memorandum from the Chair and Ranking Member of the Comm. on Ethics, New Ethics Requirements Resulting
from the STOCK Act, Apr. 4, 2012 (emphasis in original).
6
Memorandum from the Chair and Ranking Member of the Comm. on Ethics, Rules Regarding Personal Financial
Transactions, Nov. 29, 2011.
7
Id.
8
Transcript of Interview of Rep. Collins, Jun. 5, 2017 (Rep. Collins TOI) (Exhibit 1 at 17-3509_000003). At the
time of his interview with the OCE, Representative Collins wife and daughter owned half of ZeptoMetrix. Id.

Page 7 of 29
 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
maintains an inventory of bacteria, viruses, parasites, and other similar clinical
specimens.9 ZeptoMetrix sells those specimens to organizations for research purposes.10

20. In the 1990s, ZeptoMetrix supplied HIV to Virionyx Corporation (Virionyx), a New
Zealand-based company that was working to establish a cure for HIV/AIDS.11

21. In or around December 2005, Virionyx was looking to raise money from U.S. investors.12
Given his familiarity with the company, Representative Collins invited Virionyx CEO
Simon Wilkinson to pitch his Buffalo, New York-based friends and acquaintances on
investing in Virionyx.13

22. Representative Collins and several other Buffalo-based investors contributed

approximately $6-8 million dollars to Virionyx in December 2005.14 Representative
Collins was also appointed to the Virionyx Board of Directors around this time.15

23. In April 2009, Virionyx changed its name to Innate Therapeutics Limited.16 As
Representative Collins explained to the OCE, Virionyxs HIV/AIDS efforts had failed,
and the name change resulted from the companys desire to introduce [a] standalone
drug for secondary progressive [multiple sclerosis].17

24. Innate Therapeutics Limited now known as Innate Immunotherapeutics Limited

currently describes itself as a medical biotechnology company with offices in both
Sydney, Australia and Auckland, New Zealand.18

25. Innate refused to cooperate with the OCEs review. Much of the background information
on Innate, discussed below, was gathered from public sources.

26. According to the companys website, Innate has designed and manufactured a unique
immunomodulatory micropartical technology . . . that can be used to induce the human
immune system to fight certain cancers and infections, or modulate certain immune
mechanisms implicated in autoimmune diseases such as Multiple Sclerosis.19 The first

9
ZeptoMetrix, homepage, http://www.zeptometrix.com/ (last visited Jul. 5, 2017); Rep. Collins TOI (Exhibit 1 at
17-3509_000003).
10
Id.
11
Rep. Collins TOI (Exhibit 1 at 17-3509_000003).
12
Id. at 17-3509_000006.
13
Id. at 17-3509_000006-7.
14
Id.
15
Id. at 17-3509_000008.
16
Virionyx Changes Name to Innate Therapeutics, Advances Novel Immune Stimulant, MIS416, to Clinical Trials,
BUSINESS WIRE (Apr. 17, 2009), http://www.businesswire.com/news/home/20090417005089/en/Virionyx-Innate-
Therapeutics-Advances-Immune-Stimulant-MIS416.
17
Rep. Collins TOI (Exhibit 1 at 17-3509_000010).
18
Innate, homepage, http://www.innateimmuno.com/irm/content/default.aspx (last visited Jul. 5, 2017).
19
Id.

Page 8 of 29
 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
drug candidate developed by Innate using this technology is MIS416.20 The initial
clinical target for MIS416 is secondary progressive multiple sclerosis (SPMS).21

27. Innate asserts that MIS416 can trigger anti-inflammatory and reparative functions inside
the central nervous system making MIS416 a highly relevant drug candidate for the
treatment of [SPMS] and other neurological conditions where inflammation inside the
[central nervous system] contributes to disease pathology.22 Innate also claims that
there are currently no approved drugs for the effective ongoing treatment of SPMS and
therefore MIS416 would address an important unmet medical need and represent a
significant commercial opportunity.23

28. In 2014, Innate commenced a Phase 2B randomized, double-blind, placebo-controlled

trial designed to test the efficacy and safety of MIS416 in subjects with SPMS.24 The
trial was conducted at sites in Australia and New Zealand.25

29. In April 2016, Innate completed enrollment in the Phase 2B trial, with 93 patients having
enrolled in the study.26 The trial officially concluded in April 2017, and a final report on
the results of the trial was expected in August or September 2017.27 On June 27, 2017,
Innate announced top line Phase 2B results, that the drug did not show clinically
meaningful or statistically significant outcomes.28

30. In addition to the above-discussed clinical trial, Innate has also made MIS416 available to
New Zealand-based SPMS sufferers on a compassionate use basis since 2008.29
20
Innate, Company Overview, http://www.innateimmuno.com/irm/content/company-
overview.aspx?RID=299&RedirectCount=1 (last visited Jul. 5, 2017).
21
Id.
22
Completion of Phase 2B trial of MIS416 in patients with secondary progressive multiple sclerosis, INNATE (Apr.
20, 2017), http://www.innateimmuno.com/irm/PDF/1408_0/CompletionofPhase2BTrialofMIS416.
23
Id.
24
Innate, Company Overview, http://www.innateimmuno.com/irm/content/company-
overview.aspx?RID=299&RedirectCount=1 (last visited Jul. 5, 2017); Innate, Clinical Trials,
http://www.innateimmuno.com/irm/content/clinical-trials.aspx?RID=307 (last visited Jul. 5, 2017).
25
Innate, Clinical Trials, http://www.innateimmuno.com/irm/content/clinical-trials.aspx?RID=307 (last visited Jul.
5, 2017).
26
Innate Immunotherapeutics announces clinical trial fully enrolled and receives strong interest from potential
Pharma partners, INNATE (Apr. 13, 2016),
http://www.innateimmuno.com/irm/PDF/1219_0/ClinicalTrialFullyEnrolledandStrongInterest; Rep. Collins TOI
(Exhibit 1 at 17-3509_000018).
27
Completion of Phase 2B trial of MIS416 in patients with secondary progressive multiple sclerosis, INNATE (Apr.
20, 2017), http://www.innateimmuno.com/irm/PDF/1408_0/CompletionofPhase2BTrialofMIS416; Rep. Collins TOI
(Exhibit 1 at 17-3509_000003).
28
Innate Immunotherapeutics announces top-line results for trial of MIS416 in patients with secondary progressive
multiple sclerosis, INNATE (Jun. 27, 2017),
http://www.innateimmuno.com/irm/PDF/1424_0/TopLineResultsforTrialofMIS416.
29
More patients access Innates MIS416 drug on compassionate grounds, INNATE (Dec. 12, 2014),
http://www.innateimmuno.com/irm/PDF/1083/CompassionateUseProgramUpdate; Compassionate use patients
continue to report favourable responses, INNATE (May 20, 2015),
http://www.innateimmuno.com/irm/PDF/1129_0/CompassionateUseProgramUpdate; Initial compassionate use
patient approaches eight years of treatment, INNATE (Sept. 25, 2015),

Page 9 of 29
 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
Under New Zealand law, doctors may prescribe unapproved or experimental medicines to
their patients on compassionate grounds with a patients consent and approval from the
requisite governmental bodies.30 Innate reviewed the compassionate data on a weekly
basis and discussed the data at board meetings.31

31. Innate has also made MIS416 available to researchers around the world, including at the
Roswell Park Cancer Institute (RPCI).32 RPCI doctors planned to use MIS416 in
ovarian cancer trials and were waiting on the U.S. Food & Drug Administrations
(FDA) approval of Innates investigational new drug (IND) application before
proceeding with trials.33

32. Innate is a public company that trades under the symbol ILL on the Australian
Securities Exchange.34 Currently, Innate stock may be purchased by U.S. investors in an
over the counter pink sheet unregulated environment.35 Representative Collins told the
OCE that this market popped up maybe a year ago.36

33. Evidence obtained by the OCE suggests that many individuals based in the U.S.
purchased Innate stock prior to the pink sheet market Representative Collins
discussed. These purchases were not part of any private placement offering. For
example, former Representative Tom Price made three purchases of Innate stock in
January 2015.37 Innate Investor 1, a U.S. investor, also told the OCE that he purchased
Innate stock through a broker on the Australian Securities Exchange.38

http://www.innateimmuno.com/irm/PDF/1178_0/CompassionateUseProgramUpdate; Rep. Collins TOI (Exhibit 1 at

17-3509_000024).
30
Id.
31
Rep. Collins TOI (Exhibit 1 at 17-3509_000022, 25-26).
32
Transcript of Interview of Roswell Park Cancer Institute Physician 1, May 17, 2017 (RPCI Physician 1 TOI)
(Exhibit 2 at 17-3509_000063-64); see also Rep. Collins TOI (Exhibit 1 at 17-3509_000021).
33
Id. When asked whether Innate filed an IND with the FDA, Rep. Collins stated that he did not think so. Rep.
Collins TOI (Exhibit 1 at 17-3509_000020). Additionally, Rep. Collins explained that RPCI would file any
necessary IND associated with its ovarian cancer trials. Id. at 17-3509_000021-22. Contrary to Rep. Collins
explanations to the OCE, Innate filed an IND with the FDA that was approved in June 2017, after the OCEs review.
See Innate Immunotherapeutics receives FDA clearance for MIS416 Investigational New Drug application, INNATE
(Jun. 21, 2017),
http://www.innateimmuno.com/irm/PDF/1419_0/FDAClearanceMIS416InvestigationalNewDrugApplication. As
RPCI Physician 1 explained to the OCE, Innate was responsible for filing the IND application with the FDA, and
RPCI could not begin its trials prior to Innate obtaining this approval. See RPCI Physician 1 TOI (Exhibit 2 at 17-
3509_000064, 68-69, 71-72).
34
Innate, Investor Fact Sheet, http://www.innateimmuno.com/irm/content/investor-fact-sheet.aspx?RID=312 (last
visited Jul. 5, 2017).
35
Rep. Collins TOI (Exhibit 1 at 17-3509_000013).
36
Id.
37
See House of Representatives Periodic Transaction Report for former Rep. Tom Price, filed Feb. 10, 2015. Rep.
Collins told the OCE that Sec. Price had purchased Innate stock unbeknownst to him, prior to any private
placement offering. Rep. Collins TOI (Exhibit 1 at 17-3509_000045-46).
38
Transcript of Interview of Innate Investor 1, May 17, 2017 (Innate Investor 1 TOI) (Exhibit 3 at 17-
3509_000080).

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
34. Since his initial investment in December 2005, Representative Collins has made several
loans to Innate and also purchased additional stock in Innate.39 As of the date of
Representative Collins interview with the OCE, he was Innates largest shareholder,
owning approximately 16.80% of Innate stock.40 Representative Collins remains on
Innates Board of Directors and serves in an uncompensated role.41

35. Representative Collins children also own Innate stock. Two own approximately 2.30%
each of the companys stock.42 Representative Collins also told the OCE that most of
his congressional staff owns Innate stock.43 When asked about his communications with
Members of Congress and staff regarding Innate, Representative Collins responded that
the bigger question would be, who havent I talked to?44 Representative Collins
provided the OCE with names of several Members with whom he recalled discussing
Innate.

C. Representative Collins Updated Innate Shareholders With Information That

Was Public and Information That Was Likely Nonpublic
36. Representative Collins frequently updated Innate shareholders on the companys
activities, financial status, business strategies, and industry news. The OCE identified
examples of the type of communications Representative Collins made to U.S. investors
containing public and nonpublic information. According to Representative Collins, the
investors he contacted in the emails below were primarily his friends.45
37. Because Innate refused to cooperate with the review, the OCE relied heavily on Innates
public disclosures available on its website and compared those disclosures with
documents submitted to the Australian Securities Exchange.46
38. The Board notes that in all but one instance, emails from Representative Collins to U.S.-
based Innate investors were produced to the OCE exclusively from third party witnesses
and not from Representative Collins. Representative Collins explained to the OCE that
he deletes his emails and texts generally three times a day.47

39
Rep. Collins TOI (Exhibit 1 at 17-3509_000007, 9-12). See generally House of Representatives Periodic
Transaction Reports for Rep. Chris Collins, 2013, 2014, 2016.
40
Innate, Top 20 Shareholders, http://www.innateimmuno.com/irm/content/top-20-shareholders.aspx?RID=313 (last
visited Jul. 5, 2017).
41
Innate, Investor Fact Sheet, http://www.innateimmuno.com/irm/content/investor-fact-sheet.aspx?RID=312 (last
visited Jul. 5, 2017); Rep. Collins TOI (Exhibit 1 at 17-3509_000008, 12).
42
Innate, Top 20 Shareholders, http://www.innateimmuno.com/irm/content/top-20-shareholders.aspx?RID=313 (last
visited Jul. 5, 2017); Rep. Collins TOI (Exhibit 1 at 17-3509_000015).
43
Rep. Collins TOI (Exhibit 1 at 17-3509_000015).
44
Id.
45
Rep. Collins TOI (Exhibit 1 at 17-3509_000024, 44).
46
ASX Announcements, http://www.asx.com.au/asx/statistics/announcements.do (last visited Jul. 5, 2017). Rep.
Collins told the OCE that some information was disclosed publicly during presentation slide deck[s] by Simon
Wilkinson. Rep. Collins TOI (Exhibit 1 at 17-3509_000034, 39). Without Innates cooperation, the OCE could not
verify these alleged occurrences.
47
Rep. Collins TOI (Exhibit 1 at 17-3509_000024).

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
Example of Shareholder Update 1
39. On December 16, 2015, Representative Collins wrote to multiple U.S.-based Innate
investors with the subject line Fw: Updated Investor Fact Sheet.48 He wrote in the
email:

Thought you might want to see the investor summary we use at Innate. All is going
well. 65 patients are in the trials with some completing the 1 year very soon. Most,
if not all, will stay on MIS416 after the trial. Safety and Efficacy are exactly what
we expected and we have 12 compassionate patients in NZ that we monitor every
month as a proxy for the trial participants. No Surprises.49

40. Representative Collins also stated in the email that [w]e have opened up a trial site in
NZ to complete the 90 patient recruitment. We have 93 patients now identified to
complete our 90 patient recruitment.50 He went on to state that [w]e continue to talk to
big Pharma and will attend the JP Morgan Pharmaceutical Conference in San Francisco
in January . . . We continue to have no competition for our SPMS patients who are dying
from a debilitating disease.51

41. When asked about nature of trial enrollment numbers, Representative Collins told the
OCE that it was never an exact [number], but in that estimate.52 He further stated that
much of [the numbers] would be on the website, sometimes it could be a presentation
slide deck that Simon would use. He was talking to pharmaceutical companies; it was
never anything really confidential.53 Representative Collins told the OCE that he

48
Email from Rep. Collins to U.S. Innate investors, Dec. 16, 2015 (Exhibit 4 at 17-3509_000094).
49
Id.
50
Id.
51
Id.
52
Rep. Collins TOI (Exhibit 1 at 17-3509_000039). Representative Collins also told the OCE that Mr. Wilkinson
attended the meetings with pharmaceutical companies on a regular basis for eight to ten years. Id. at 17-
3509_000037. Representative Collins stated that he did not attend these meetings. Id.
53
Id. at 17-3509_000039.

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Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
received information regarding Phase 2B enrollment from Simon Wilkinson during
Innate board meetings.54
42. Representative Collins also told the OCE that it was always Innates intention to sell the
program to a large pharmaceutical company.55
43. Representative Collins wrote further in the email that [w]e are already looking at
commercial production of MIS416 which is very different for 50,000 potential patients
vs. 90 patients in the trial. We want to have the manufacturer identified when we
hopefully monetize our investment in 2017. The more we derisk the investment the
higher our return, and locking down the manufacturing process is a big deal.56

Public Information Related to Example 1

44. The Investor Fact Sheet is a consistently updated public document that was available
on Innates website prior to the December 2015 email above.57
45. The OCE confirmed that Innate had publicly announced its intention to partner with, or
become acquired by, big pharma on multiple occasions in 2013 and 2014.58 These
public statements were issued prior to any statements or communications made by
Representative Collins to Innate shareholders that were obtained by the OCE.

46. Innates participation in New Zealands compassionate program was also publicly
disclosed prior to any email from Representative Collins to Innate shareholders that was
obtained by the OCE. In December 2014, roughly a year before the email above, Innate
announced its decision to provide MIS416 to additional SPMS patients, providing details
on the compassionate program.59 Information on patient feedback, patient conditions,
and patient numbers was also disclosed in the same announcement.60

54
Id.
55
Rep. Collins TOI (Exhibit 1 at 17-3509_000027-28, 36-37).
56
Email from Rep. Collins to U.S. Innate investors, Dec. 16, 2015 (Exhibit 4 at 17-3509_000094).
57
Investor Fact Sheet, INNATE (Sept. 27, 2016),
http://www.innateimmuno.com/irm/company/showpage.aspx/PDFs/1334-72653175/InvestorFactSheet. The OCE
found different versions of the Fact Sheet that had been modified over time. Rep. Collins told the OCE that Mr.
Wilkinson and his team are responsible for developing the information on the sheet and placing it on the website,
which is where Rep. Collins obtained the document before attaching to the email shown above. Rep. Collins TOI
(Exhibit 1 at 17-3509_000040).
58
See, e.g., Replacement Prospectus, INNATE (Nov. 25, 2013),
http://www.innateimmuno.com/irm/PDF/937_0/InnateImmunotherapeuticsLimitedReplacementProspectus; Investor
Presentation, INNATE (Dec. 2014),
http://www.innateimmuno.com/irm/PDF/1105_0/InvestorPresentationNovember2014.
59
More patients access Innates MIS416 drug on compassionate grounds, INNATE (Dec. 12, 2014),
http://www.innateimmuno.com/irm/PDF/1083/CompassionateUseProgramUpdate.
60
Id.; Initial compassionate use patient approaches eight years of treatment, INNATE (Sept. 25, 2015),
http://www.innateimmuno.com/irm/PDF/1178_0/CompassionateUseProgramUpdate. To date, Innate has
continuously updated public information on patient data in the compassionate program. Rep. Collins told the OCE
that videos of patient testimonials are gold for recruitment purposes. Rep Collins TOI (Exhibit 1 at 17-
3509_000048).

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47. Innate publicly disclosed an intention to start the drug manufacturing scale up planning
in October 2015, 61 although the information concerning commercial production
Representative Collins provided to investors is significantly more detailed in the
December 2015 email above.
Nonpublic Information Related to Example 1
48. The OCE did not obtain any information showing public disclosure of the number of
Phase 2B trial participants, or their status in a trial, that reflect the numbers in
Representative Collins December 2015 email to investors. Similarly, Innate did not
publicly disclose any information concerning safety and efficacy pertaining to the
sixty-five on drug patients identified in the email.62
49. Innate announced publicly in July 2015, that 45 patients (50% of the target 90 patients)
are now enrolled . . . in the Phase 2B trial,63 and in November 2015 that eighty of the
target 90 patients are now currently either on treatment, being screened, or coming off
previous medications in readiness to be enrolled in the study.64 However, the OCE did
not obtain any information showing public disclosure of enrollment completion or
recruitment completion numbers for the Phase 2B trial prior to the December 2015 email
to investors.
50. On January 29, 2016, roughly one month later, Innate disclosed that a total of ninety-
three subjects have now either been enrolled, are being screened, or are coming off
previous medications in order to be eligible for enrolment into the study. The Company
expects to close enrolment by the end of the current quarter.65

61
4C Quarterly Cash Flow Report, INNATE (Oct. 30, 2015),
http://www.innateimmuno.com/irm/PDF/1188_0/Appendix4CQuarterlyCashFlowReportSept15Qtr.
62
In a December 16, 2015 publicly available Investor Fact Sheet, Innate stated that [c]ompleted Phase 1B/2A trials
of MIS416 have demonstrated an acceptable safety and tolerability profile . . . . Investor Fact Sheet, INNATE (Dec.
16, 2015), http://www.innateimmuno.com/irm/PDF/1204_0/InvestorFactSheet. However, in Rep. Collins email to
investors, he discusses safety and efficacy immediately after discussing the sixty-five patients on drug. Email
from Rep. Collins to U.S. Innate investors, Dec. 16, 2015 (Exhibit 4 at 17-3509_000094).
63
Bioshares Investment Summit Presentation, INNATE (Jul. 20, 2015),
http://www.innateimmuno.com/irm/PDF/1152_0/2015BiosharesInvestmentSummitPresentation.
64
Half Year Report, INNATE (Nov. 11, 2015),
http://www.innateimmuno.com/irm/PDF/1198_0/HalfYearlyReportandAccounts.
65
4C Quarterly Cash Flow Report, INNATE (Jan. 29, 2016),
http://www.innateimmuno.com/irm/PDF/1210_0/Appendix4CDec2015QuarterlyCashFlowReport.

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Example of Shareholder Update 2
51. On January 28, 2016, in another email to multiple U.S.-based, Innate shareholders, with
subject line Trial Update, Representative Collins stated that [w]e currently have 93
patients signed up for the trial . . . [a]pproximately 80 are on drug and 13 are waiting to
complete evaluation and have their first dose of MIS 416. It will probably be the end of
Feb or first week of March when the 90th patient is on drug which starts the 12 month
clock ticking to complete Phase II B trial.66 Representative Collins then stated that
[w]e continue to have very promising conversations with big pharma.67

52. Representative Collins went on to state that [w]e have been urged by big pharma to
move forward with a plan for large scale manufacturing of MIS416 . . . We grow our
drug in bacteria and have to have a sterile process from start to finish to satisfy FDA . . .
[W]e are talking to several [manufacturing facilities] and doing our due diligence to
choose a suitable manufacturer. We will be spending $$ to move this forward as it is a
significant factor in the final value of Innate. The further along we are with the large
scale manufacturing, the more desirable ($$$) our company.68

53. Representative Collins told the OCE that during Innate board meetings, he became aware
of the status of discussions with big pharma.69 Concerning the FDA, he also stated that
ultimately, whoever buys our company is going to go to the FDA. The big markets in
the U.S.70

66
Email from Rep. Collins to U.S. Innate investors, Jan. 28, 2016 (Exhibit 5 at 17-3509_000096).
67
Id.
68
Id.
69
Rep. Collins TOI (Exhibit 1 at 17-3509_000041).
70
Id. at 17-3509_000042.

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Public Information Related to Example 2

54. On January 29, 2016, Innate announced the identification of ninety-three subjects
eligible for the Phase 2B trial.71

55. As stated previously, the OCE confirmed that Innate had publicly discussed its intention
to partner with, or become acquired by, big pharma on multiple occasions in 2013 and
2014.72 These public statements were issued prior to any statement made by
Representative Collins to shareholders that were obtained by the OCE.

56. Innate publicly disclosed an intention to start the drug manufacturing scale up planning
in October 2015, roughly three months prior to the January 2016 email above.73
Nonpublic Information Related to Example 2
57. The OCE did not obtain any information showing public disclosure of the number of
Phase 2B trial participants on drug, and those awaiting further evaluation, that reflect
the numbers in Representative Collins January 2016 email to investors.
58. Similarly, Representative Collins statement that [i]t will probably be the end of Feb or
first week of March when the 90th patient is on drug which starts the 12 month clock
ticking to complete Phase II B trial was not disclosed publicly by Innate prior to the
January 2016 email to investors.
59. As discussed above, although Innate had announced an intention to scale up
manufacturing of MIS416, public disclosures did not include information on any
urg[ing] by big pharma to move forward with a plan for scaled up manufacturing.

71
4C Quarterly Cash Flow Report, INNATE (Jan. 29, 2016),
http://www.innateimmuno.com/irm/PDF/1210_0/Appendix4CDec2015QuarterlyCashFlowReport. Though Rep.
Collins email is dated Jan. 28, 2016, and Innates announcement is dated Jan. 29, 2016, Australias time and date
differences may explain the discrepancy.
72
See, e.g., Replacement Prospectus, INNATE (Nov. 25, 2013),
http://www.innateimmuno.com/irm/PDF/937_0/InnateImmunotherapeuticsLimitedReplacementProspectus; Investor
Presentation, INNATE (Dec. 2014),
http://www.innateimmuno.com/irm/PDF/1105_0/InvestorPresentationNovember2014.
73
4C Quarterly Cash Flow Report, INNATE (Oct. 30, 2015),
http://www.innateimmuno.com/irm/PDF/1188_0/Appendix4CQuarterlyCashFlowReportSept15Qtr.

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Example of Shareholder Update 3
60. In a June 1, 2016 email to multiple U.S.-based, Innate shareholders with the subject
Next Offering, Representative Collins wrote [t]enatively the IIL offer will launch July
15 or thereabouts. Tentative price of $.25 AUS or $.18 US. 20 million new shares or 10%
of outstanding shares. 10% dilution if current shareholders dont participate.74

61. Representative Collins further stated in the email that the purpose of the offer was to
[r]aise $5 million AUS to carry the company 18 months and allow for investment in
manufacturing scale up. Plan is to monetize our investment in that time frame. So this is
the last planned offering. This offering will be to existing NZ/AUS shareholders or US
investors I identify. . . Price is a 10% discount to the 20 day weighted average price.75

62. Representative Collins told the OCE that the content of this email, regarding a private
placement offering, really got the scrutiny of everyone . . . .76 This was the first
private placement offer of 2016.77 Representative Collins confirmed that the recipients
of the email were existing U.S.-based Innate shareholders.78

63. On June 7, 2016, Representative Collins sent a similar group of investors an email
offering US investors the opportunity to subscribe for shares in the next 2 days . . . .79
He stated that the new offer situation has now been finalized with a slightly different
offer to US investors than investors in AUS or NZ.80

74
Email from Rep. Collins to U.S. Innate investors, Jun. 1, 2016 (Exhibit 6 at 17-3509_000098).
75
Id.
76
Rep. Collins TOI (Exhibit 1 at 17-3509_000043).
77
Id.
78
Id.
79
Email from Rep. Collins to U.S. Innate investors, Jun. 7, 2016 (Exhibit 7 at 17-3509_000100-01).
80
Id.

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Public Information Related to Example 3
64. Innate publicly disclosed an intention to start the drug manufacturing scale up planning
in October 2015.81 In addition, Innate publicly disclosed in May 2016 a project to make
MIS416 ready for manufacturing on a commercial scale.82 Innate also disclosed that the
Company will need to raise between A$3 to A$5 million before the end of the current
calendar year.83
Nonpublic Information Related to Example 3
65. The OCE did not obtain any information showing public disclosure of the details of the
private placement offer prior to the June 1, 2016 email from Representative Collins to
investors. Innate had publicly disclosed general information on its website about
previous private placements and an additional capital program,84 but did not disclose
any public information concerning the terms and details of a proposed 2016 private
placement offering.85

66. On June 10, 2016, nine days after the email above, Innate publicly announced the private
placement offer terms to U.S. investors and a rights issue to shareholders in Australia
and New Zealand.86

67. Innates announcement stated that [t]he Placement of 10,009,032 ordinary shares at
US$0.18 per share has been effected with sophisticated U.S. investors to raise
US$1,801,635 being approximately A$2.4 million. The issue price of US$0.18 per share
equates to approximately A$0.25 or NZ$0.27 and represents a 12% discount . . . .87
D. The Nonpublic Information Representative Collins Shared With Innate
Investors May Have Been Material
68. Some information Representative Collins shared with Innate investors was likely
nonpublic and may have been important to investors making a decision on whether to
purchase Innate stock.

69. In this review, the OCE employed an expert consultant in the global healthcare and life
sciences regulatory environment. In making these findings, the OCE relied on the

81
4C Quarterly Cash Flow Report, INNATE (Oct. 30, 2015),
http://www.innateimmuno.com/irm/PDF/1188_0/Appendix4CQuarterlyCashFlowReportSept15Qtr.
82
Gordon Capital Research Coverage, INNATE (May 2016),
http://www.innateimmuno.com/irm/PDF/1248_0/InitiationofCoverageGordonCapitalReseach.
83
Id.
84
Id.
85
Advance knowledge of a private placement and its terms can constitute material nonpublic information. See, e.g.,
SEC v. Lyon, 529 F. Supp. 2d 444, 447 (S.D.N.Y. 2008).
86
Private Placement and Rights Issue to raise Additional Working Capital, INNATE (Jun. 10, 2016),
http://www.innateimmuno.com/irm/PDF/1250_0/PlacementampRightsIssuetoRaiseAdditionalWorkingCapital.
87
Id.

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evidence obtained during the review and was informed by the opinions of the expert
concerning the materiality of certain nonpublic information.

70. Innates ability to identify and enroll patients into the Phase 2B trial was a key issue for
the company and something that Representative Collins and Innate mentioned on
multiple occasions to investors and in public announcements.88 According to
Representative Collins, the 90th patient starts the 12 month clock ticking to complete the
Phase II B trial.89 Increased numbers of patients on drug or identified as eligible for
trial were necessary to trial completion.

71. The completion of the Phase 2B trial was significant to Innates financial strategy.
Representative Collins told the OCE that pharmaceutical companies investment point is
at the end of 2B.90 Similarly, information regarding communications with
pharmaceutical companies and their direction to scale up manufacturing was a
significant factor in the final value of Innate. Representative Collins explained to
investors that manufacturing abilities correlated to increased value and desirability of
acquiring Innate.

72. Given Innates intention to partner with, or become acquired by a large pharmaceutical
company, updates on patient enrollment, the eventual completion of enrollment, and
specific communications with pharmaceutical companies were likely important facts for
investors making a decision about whether to purchase or sell Innate stock.

73. The information Representative Collins provided U.S. investors regarding the private
placement offering, nine days before the public announcement of the offering, gave
investors ample time to purchase or sell stock on an open market. Representative Collins
specifically discussed the consequences of share dilution if current shareholders did not
participate in the offering.

74. Representative Collins did not ask the investors to keep the information confidential prior
to the private placement offers public announcement. The terms of the offer prior to
public announcement were likely important facts for investors making a decision on
whether to purchase or sell Innate stock.

88
See, e.g., Email from Rep. Collins to U.S. Innate investors, May 4, 2015 (Exhibit 8 at 17-3509_000105) (We
continue with enrollment in our Phase 2B trial at 5 sites. 3 of the sites are doing well, with the other 2 a little slow
with recruitment.); 4C Quarterly Cash Flow Report, INNATE (Apr. 30, 2015),
http://www.innateimmuno.com/irm/PDF/1119_0/Appendix4CMarch2015Quarterly (discussing the slower pace of
patient enrollment).
89
Email from Rep. Collins to U.S. Innate investors, Jan. 28, 2016 (Exhibit 9 at 17-3509_000107).
90
Rep. Collins TOI (Exhibit 1 at 17-3509_000036).

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III. REPRESENTATIVE COLLINS AND INNATES PRIVATE PLACEMENT

OFFERINGS

A. Applicable Law, Rules, and Standards of Conduct

75. House Rules

House Rule 25, clause 5 states that [a] Member . . . may not knowingly accept a gift
except as provided in this clause. Clause 5 defines the term gift broadly to include
any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or other
item having monetary value, and also including gifts of services, training,
transportation, lodging, and meals, whether provided in kind, by purchase of a ticket,
payment in advance, or reimbursement after the expense has been incurred.

76. Committee on Ethics Guidance

Committee on Ethics guidance also states that Members and employees may accept
opportunities, like discounted investments, that are available to the public or to a class
consisting of all Federal employees.91 In addition, Members and employees may also
accept opportunities that are [o]ffered to members of a group or class in which
membership is unrelated to congressional employment.92 . . . If, however, the Member or
employee took advantage of an investment opportunity received solely because of their
congressional status and the opportunity was offered and accepted at less than fair
market value, then the Member or employee received an impermissible gift.93

B. Innate Offered a Private Placement to Qualified U.S. Investors That Was

Unrelated to Congressional Status

77. In June 2016, Innate sought to raise additional capital in order to fund, among other
things, its Phase 2B clinical trial.94 In a June 10, 2016 press release, Innate explained that
it had raised approximately $1,801,635 (USD) via a private placement offer to U.S.
investors and was undertaking a rights issue to Australian and New Zealand investors in
the hopes of raising another $3,025,000 (AUS).95

78. Both the U.S. investors taking part in the private placement and the Australian and New
Zealand investors taking part in the rights offer received, approximately, a 12% discount
on Innate shares.96 As Representative Collins explained, this was a slight discount to the

91
Memorandum from the Chair and Ranking Member of the Comm. on Ethics, Rules Regarding Personal Financial
Transactions, Nov. 29, 2011.
92
Id.
93
Id.
94
Private Placement and Rights Issue to raise Additional Working Capital, INNATE (Jun. 10, 2016),
http://www.innateimmuno.com/irm/PDF/1250_0/PlacementampRightsIssuetoRaiseAdditionalWorkingCapital.
95
Id.
96
Id.

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closing share price of [Innate stock for] the prior 30 days, which was designed to
incentivize participation in the current offering.97

79. According to Representative Collins, the private placement offer was available to any
accredited U.S. investors, and he was tasked with identifying those individuals as the
lead in the U.S.98 Representative Collins received 4,000,000 shares at the discounted
price for the first private placement.99

80. Evidence obtained by the OCE indicates that these offers were made to numerous
Buffalo-based associates of Representative Collins.100 Innate Investor 1, a Buffalo-based
investor, took part in the private placement offering and had no connection to
Representative Collins congressional office.101 Other Innate investors that submitted
information to the OCE also had no connection to Representative Collins congressional
office.

81. Because the initial rights offer was oversubscribed, certain U.S. investors were unable to
purchase shares at the original discounted price. Innate then opted to do a further private
placement in July 2016.102 This secondary private placement was also offered at a
discount.103 Like the initial private placement, the second offer was made to numerous
individuals associated with Representative Collins and was not provided to
Representative Collins or his staff based on his status as a Member of Congress.104

97
Rep. Collins TOI (Exhibit 1 at 17-3509_000044). Without the discount, potential investors could simply purchase
shares on the open market. See id.
98
Rep. Collins TOI (Exhibit 1 at 17-3509_000044, 47-48).
99
Notice of Annual General Meeting and Explanatory Statement, INNATE (Aug. 31, 2016),
http://www.innateimmuno.com/irm/PDF/1285_0/NoticeofAnnualGeneralMeetingProxyForm; House of
Representatives Periodic Transaction Report for Rep. Chris Collins, filed Sept. 7, 2016.
100
See, e.g., Emails from Rep. Collins to U.S. Innate investors, Dec. 2016, Jan. 2016, Jun. 2016 (Exhibit 4 at 17-
3509_000094); (Exhibit 5 at 17-3509_000096); (Exhibit 6 at 17-3509_000098).
101
Innate Investor 1 TOI (Exhibit 3 at 17-3509_000076, 78).
102
Email from Rep. Collins to U.S. Innate investors (Jul. 13, 2016) (Exhibit 9 at 17-3509_000107); Rights Issue
Strongly Supported, INNATE (Jul. 7, 2016),
http://www.innateimmuno.com/irm/PDF/1265_0/RightsIssueStronglySupported.
103
Id.
104
Id.; see also Final stage of Capital Raising Programme Completed, INNATE (Jul. 20, 2016),
http://www.innateimmuno.com/irm/PDF/1274_0/FinalStageofCapitalRaisingProgrammeCompleted.

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IV. REPRESENTATIVE COLLINS MEETINGS WITH NIH EMPLOYEES

REGARDING INNATE

A. Applicable Law, Rules, and Standards of Conduct

82. House Rules

House Rule 23, Clause 3 states that A Member, Delegate, Resident Commissioner,
officer, or employee of the House may not receive compensation and may not permit
compensation to accrue to the beneficial interest of such individual from any source, the
receipt of which would occur by virtue of influence improperly exerted from the position
of such individual in Congress.

House Rule 23, clause 12 states that (a) Except as provided in paragraph (b), an
employee of the House who is required to file a report under rule XXVI may not
participate personally and substantially as an employee of the House in a contact with an
agency of the executive or judicial branches of Government with respect to nonlegislative
matters affecting any nongovernmental person in which the employee has a significant
financial interest. (b) Paragraph (a) does not apply if an employee first advises the
employing authority of such employee of a significant financial interest described in
paragraph (a) and obtains from such employing authority a written waiver stating that
the participation of the employee in the activity described in paragraph (a) is necessary.
A copy of each such waiver shall be filed.

83. Code of Ethics for Government Service 5

Never discriminate unfairly by the dispensing of special favors or privileges to anyone,

whether for remuneration or not; and never accept, for himself or his family, favors or
benefits under circumstances which might be construed by reasonable persons as
influencing the performance of his governmental duties.

84. Committee on Ethics Reports

In The Matter of Representative Maxine Waters, the Committee reiterated the commonly
understood guidance that Members cannot take official actions that would assist a single
entity in which the member has a significant financial interest, particularly when that
interest would clearly be affected by the assistance sought.105

[T]his Committee recognizes that [a]n important aspect of a House Members

representative function is to act as a go-between or conduit between the Members
constituents and administrative agencies of the federal government. However, [i]n
taking such action, a Member of staff person must observe certain ethical principles,

105
In the Matter of Allegations Relating to Representative Phillip Gingrey, 113th Cong., 2d Sess. (2014) at 12.

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including the prohibition in Section 5, clause 1, on discriminat[ing] unfairly by the
dispensing of special favor or privileges to anyone, whether for remuneration or not.106
When analyzing actions by Members that impact non-constituents, the Committee looks
to whether there is substantial evidence that the Member treated the non-constituent
and its representatives differently than other non-constituents based on [the Members]
financial investment . . . and position on the board of directors.107
When analyzing actions by Members that impact non-constituents, the Committee has
indicated that providing assistance to a non-constituent entity in which the Member has a
financial interest is particularly troubling.108
85. House Ethics Manual

In assisting a private enterprise, a Member should be mindful that congressional

allowances, including those for staff, are available only for conducting official business.
Assistance should not extend so far that the congressional office is actually doing the
work of the private business, rather than of the Congress.109

A provision of the rules issued by the House Administration Committee allows minor,
incidental personal use of House equipment and supplies. However, the Standards
Committee understands that this provision allows such use of those resources for
personal purposes only, and does not allow their use for outside employment or business
purposes.110

B. Representative Collins Was Invited to the NIH During a July 2013 Science,
Space, & Technology Committee Hearing

86. On July 31, 2013, the Research and Technology Subcommittee of the House Committee
on Science, Space, & Technology held a hearing entitled The Frontiers of Human Brain
Research.111 During that hearing, Dr. Story Landis, then-Director of the National
Institute of Neurological Disorders and Stroke (NINDS), provided testimony to the
Subcommittee.112

87. Representative Collins, a member of the House Committee on Science, Space, &
Technology, asked Dr. Landis a question and made statements during the hearing. He
stated at the hearing, I do know there is one drug, MIS416, which is a microparticle
106
Id. at 13-14
107
Id. at 14.
108
Id. at 17.
109
House Ethics Manual (2008) at 310.
110
Id. at 197.
111
The Frontiers of Human Brain Research: Hearing before H. Comm. on Science, Space, & Technology,
Subcomm. on Research and Technology, 113th Cong. (2013),
https://science.house.gov/legislation/hearings/subcommittee-research-and-technology-hearing-frontiers-human-
brain-research (last visited Jul. 5, 2017).
112
Id.

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immune stimulant that is in Phase 2B trials that has promise . . . .113 Representative
Collins did not identify Innate or his connection to the company during the hearing.114

88. Dr. Landis later stated to Representative Collins at the hearing that if you would like to
come visit the intramural program, we have several investigators working on MS and
would be pleased to have you come and meet with them and see the labs and some of the
kind of approaches we are taking.115 Representative Collins responded I definitely
would like to take you up on that. It is an important part of what is going on in western
New York and thank you very much.116

89. On August 5, 2013, Representative Collins former Legislative Assistant, Jeff Freeland,
emailed a staff member on the House Committee on Science, Space, & Technology.117
He wrote [w]hen my boss asked his question to Dr. Landis, she mentioned that hes
welcome to come out to their intramural labs that are working on M.S. research. Could
you link me up with one of the NIH government liaison folks?118

90. The same day, on August 5, 2013, the Committee staff member emailed Mr. Freeland
with an introduction to a NIH government liaison.119 That NIH liaison then emailed two
other NIH employees to introduce Mr. Freeland to specific staff members at NIH who
handle legislative affairs.120

91. On August 6, 2013, NIH Employee 1, one of the ccd individuals on the email discussed
above, emailed Mr. Freeland and invited Representative Collins to the NIH intramural
labs.121

C. Representative Collins Had a Meeting With NIH Employees That Was

Scheduled and Staffed by His Congressional Office

92. On August 22, 2013, Representative Collins Scheduler emailed NIH Employee 1 to
inquire about dates for Representative Collins visit to NIH.122 The Scheduler and NIH
Employee 1 emailed additional times to set a date, eventually settling on November 18,
2013.123

113
The Frontiers of Human Brain Research Hearing Transcript (Jul. 31, 2013),
https://www.gpo.gov/fdsys/pkg/CHRG-113hhrg82224/pdf/CHRG-113hhrg82224.pdf.
114
Id.
115
Id.
116
Id.
117
Emails between Rep. Collins Scheduler, Jeff Freeland, NIH employees, and H. Comm. on Science, Space, &
Technology staff, Aug. 5-6, 2013 (Exhibit 10 at 17-3509_000109-11).
118
Id. at 17-3509_000111.
119
Id.
120
Id. at 17-3509_000110.
121
Id. at 17-3509_000109.
122
Id.
123
Email from NIH Employee 1 to Rep. Collins Scheduler, Oct. 30, 2013 (Exhibit 11 at 17-3509_000113).

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Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
93. NIH Employee 1 is a health science policy analyst in NINDSs Office of Science Policy
and Planning.124 Her main role in that position is managing interactions with
Congress.125 She interfaces with congressional staff, sets up times for congressional
visits, shares draft agendas with congressional staff, and assists with logistical support in
receiving the members of Congress.126 She was present at the July 31, 2013 The
Frontiers of Human Brain Research hearing discussed above and assisted Dr. Landis in
her hearing preparation.127

94. On November 15, 2013, in preparation for Representative Collins visit to NIH, NIH
Employee 1 emailed a final agenda to Representative Collins Scheduler and Jeff
Freeland.128 The agendas title reads: Visit by Representative Chris Collins National
Institute of Neurological Disorders and Stroke, NIH Monday, November 18, 2013
Agenda.129

95. The agenda identifies that Representative Collins and Mr. Freeland were scheduled to
attend meetings with NINDS staff and other NIH personnel.130

124
Transcript of Interview of NIH Employee 1, May 19, 2017 (NIH Employee 1 TOI) (Exhibit 12 at 17-
3509_000115).
125
Id.
126
Id. at 17-3509_000116-17.
127
Id. at 17-3509_000118-19.
128
Email from NIH Employee 1 to Rep. Collins Scheduler and Jeff Freeland, Nov. 15, 2013 (Exhibit 13 at 17-
3509_000134).
129
Visit by Rep. Collins Final Agenda, Nov. 18, 2013 (Exhibit 14 at 17-3509_000136).
130
Id.

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
96. On the morning of November 18, 2013, the same day Representative Collins was
scheduled to visit NIH, Mr. Freeland wrote to NIH Employee 1, [j]ust had one quick
thing I wanted to tell you over the phone. Could you give me a call at the office when you
have a moment?131

97. Representative Collins told the OCE that he did not ask Mr. Freeland to have the
telephone call with NIH Employee 1 and did not know what the subject of the call was.132

98. NIH Employee 1 told the OCE that in response to the request from Jeff Freeland in the
email, she placed a telephone call to Mr. Freeland.133 In that telephone conversation, Mr.
Freeland told NIH Employee 1 that he wanted her to be aware of Collins involvement
in the Innate Immunotherapeutics company, and that it was a company that was
developing, trying to develop, a drug for MS.134

99. NIH Employee 1 stated that Mr. Freeland didnt tell me anything in that conversation on
the phone that I did not already know.135 She stated that in preparing for Representative
Collins visit, she pulled together information on Representative Collins and his
involvement in this company.136 She then informed the NINDS personnel scheduled to
attend the meeting about Representative Collins involvement with Innate.137

100. According to NIH Employee 1, aside from the personnel listed on the agenda, the
meeting attendees were Representative Collins, Jeff Freeland, herself, and another NIH
legislative liaison.138

101. The OCE asked Representative Collins repeatedly why he scheduled and attended the
meetings at NIH on November 18, 2013. He provided the OCE with varying responses.
He described his visit as a tour, a high school field trip, and like going to the

131
Email from Jeff Freeland to NIH Employee 1, Nov. 18, 2013 (Exhibit 15 at 17-3509_000138).
132
Rep. Collins TOI (Exhibit 1 at 17-3509_000055-56).
133
NIH Employee 1 TOI (Exhibit 12 at 17-3509_000121).
134
Id. at 17-3509_000120.
135
Id.
136
Id.
137
Id.
138
Id. at 17-3509_000127.

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
Smithsonian.139 He also stated that he went to the NIH as a private citizen and that his
visit had no relation to any official duties.140

102. Based on those responses, the OCE asked Representative Collins why he would be
accompanied by his former Legislative Assistant at the NIH meeting. Representative
Collins responded: I dont go anywhere alone.141

D. Representative Collins Discussed Innate With the NIH Employees and

Requested That an NIH Researcher Meet With Innates Chief Scientific
Officer

103. NIH Employee 2 participated in Representative Collins visit to the NIH on November
18, 2013.142 She is a physician and Investigator at NINDS that runs clinical trials in
progressive multiple sclerosis.143 NIH Employee 2 told the OCE that probably from NIH
I know most about immunology of progressive multiple sclerosis.144

104. NIH Employee 2 stated that NIH Employee 1 organized the November 18, 2013
meeting.145 NIH Employee 1 told NIH Employee 2 that this Congressman is coming,
hes really interested in multiple sclerosis, would you be willing to talk about your
research program, and give a small presentation. And answer questions?146 NIH
Employee 2 agreed to NIH Employee 1s request.147

105. During the visit, other NIH personnel participated in the meeting with Representative
Collins.148 NIH Employee 2 recalled giving a five minute Power Point presentation on
her research and work.149 She stated that she did not think she was ever alone with
Representative Collins and recalled NIH Employee 1 being present in the meetings. 150

106. NIH Employee 2 told the OCE that during the visit, Representative Collins basically
said that he [was] somehow associated with this Innate Immunotherapuetics group and
they need some help with the design of the next Phase 2 trial and he asked me whether I
would be willing to help them and I said yes.151

139
Rep. Collins TOI (Exhibit 1 at 17-3509_000050-51).
140
Id. at 17-3509_000049, 51.
141
Id. at 17-3509_000051.
142
Transcript of Interview of NIH Employee 2, May 10, 2017 (NIH Employee 2 TOI) (Exhibit 16 at 17-
3509_000141-42).
143
Id. at 17-3509_000141.
144
Id.
145
Id. at 17-3509_000142.
146
Id.
147
Id. NIH Employee 2 stated that she has participated in only two congressional visits during her time at NIH. Id.
148
Id. at 17-3509_000143.
149
Id. at 17-3509_000143-44.
150
Id. at 17-3509_000143.
151
Id. at 17-3509_000147.

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
107. NIH Employee 2 stated further that he was asking me whether I am aware of [Innates]
drug. I wasnt, I wasnt aware of his company and he asked me what are the difficulties
with setting up clinical trial for progressive MS . . . .152

108. According to NIH Employee 2, she did not recall Representative Collins bringing any
constituents with him or discussing any legislation addressing multiple sclerosis.153

109. NIH Employee 1 corroborated this information, telling the OCE that she recalled
Representative Collins asking NIH Employee 2 if she would be willing to meet with
some of the people from [Innate].154

110. After the meeting ended, NIH Employee 2 stated that Representative Collins handed her
like some congressional stamp or whatever . . . it wasnt a stamp . . . like a coin with
wording about U.S. Congress.155 Representative Collins then asked for her business
card and she gave him her card.156

111. NIH Employee 2 stated that she has met with Innates Chief Scientific Officer on three
occasions.157 The first meeting occurred at NIH after Representative Collins requested
that the two meet.158 The second and third meetings occurred at conferences in Montana
and Boston, respectively.159 She stated that the second and third meetings were not
planned but that the first meeting, at NIH, was a direct result of the request by
Representative Collins.160

112. Representative Collins confirmed to the OCE that he was sure he would have discussed
Innate at the NIH meeting on November 18, 2013.161 However, Representative Collins
stated that he could not recall any specific conversations with NIH Employee 2 and did
not believe he asked NIH Employee 2 to meet with any Innate employees, nor did he
recall handing anything to her.162

V. CONCLUSION

113. Based on the information obtained in this review, the Board recommends that the
Committee on Ethics further review the above allegation because there is a substantial
reason to believe that Representative Collins shared material nonpublic information in the

152
Id. at 17-3509_000150.
153
Id.
154
NIH Employee 1 TOI (Exhibit 12 at 17-3509_000125).
155
NIH Employee 2 TOI (Exhibit 16 at 17-3509_000147).
156
Id.
157
Id. at 17-3509_000140.
158
Id.
159
Id.
160
Id. at 17-3509_000140-41.
161
Rep. Collins TOI (Exhibit 1 at 17-3509_000052).
162
Id. 17-3509_000051-52.

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 CONFIDENTIAL

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended
purchase of Innate stock, in violation of House rules, standards of conduct, and federal
law.

114. Based on the information obtained in this review, the Board recommends that the
Committee on Ethics dismiss the above allegation because there is not a substantial
reason to believe that Representative Collins purchased discounted stock that was not
available to the public and that was offered to him based on his status as a Member of the
House of Representatives, in violation of House rules, standards of conduct, and federal
law.

115. Based on the information obtained in this review, the Board recommends that the
Committee on Ethics further review the above allegation because there is a substantial
reason to believe that Representative Collins took official actions or requested official
actions that would assist a single entity in which he had a significant financial interest, in
violation of House rules and standards of conduct.

VI. INFORMATION THAT THE OCE WAS UNABLE TO OBTAIN AND

RECOMMENDATIONS FOR THE ISSUANCE OF SUBPOENAS

116. The following individuals refused to cooperate with the OCEs review:

(1) Tom Price;

(2) Innate;
(3) Simon Wilkinson;
(4) Jeff Freeland;
(5) Chris Graham;
(6) Dr. Mark Lema;
(7) William Grove;
(8) Marcia Grove;
(9) L. William Paxon; and
(10) Guy Agostinelli.

117. The Board recommends that the Committee on Ethics issue subpoenas to the above listed
individuals and entities.

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