716 Week in Review - August 9, 2018

Congressman Chris Collins was indicted by a federal grand jury of insider trading and lying to the FBI. We dive right into it with the press conference from US Attorney Geoffrey Berman, who announced the indictment, then get Congressman Collins' response at the widely-panned statement on Wednesday evening. Legal, political, and insider trading analysis follows. Rate, review, and subscribe to the podcast on iTunes and follow Mike on Twitter @MikeBaggerman
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716 week in review was recorded at 415. On Thursday August 9. Things might be a little bit different by the time you're hearing and as you can always stay up to speed with the latest coverage of Western New York news at the top and bottom of every hour. On WB EN and dumping UB EN dot com. Let's get into this week's show we got one major story we're diving full lean depth into it. And it's pretty easy to figure out. I. Or her life back and we break down the top news stories of the week in this podcast. And hate make sure you help yourself. Lease rate review and subscribe to this podcast on iTunes tell friend tell your dog tell you can't tell here. Guinea pay you tell your people that you might. I don't watch for the weekend. At any rate make sure you followed WB and on Twitter were happy news radio 930 you can follow me on Twitter. I'm at Mike Bagram and we've got new episodes recorded for you every single Thursday. And another major thing that you can always do for us. Is download the radio dot com map that we can succeed WP and anytime anywhere you can get pushed other patients from us. For whatever the major news stories that are happening traffic alerts to their all from the radio dot com so we've got. One major huge. Groundbreaking story that we've been covering. Basically for the last 48 hours that's that's around the time that we've been. That that's happened since this whole Chris Collins news broke out congressman. Chris Collins who represents and why twenties seven encompasses. A good portion Niagara count New Orleans county Genesee counting. Congressman Chris Collins indicted on criminal charge. Before we dive into a lot of the audio like I don't wanna give you a little bit in size to what the WB yen newsroom was around that time if you listen to WB and on a regular basis you know that we have our morning news program a new morning with Susan Rosen Brian has around ski echoes from 5 AM until nine yen. Typically what happens behind the scenes here is after they finish up their morning show collectively as a newsroom weekend there in our area. With Conan do for the day happier outlook Hannity side stories to recover. We want to figure out what kind of stories we wanna kitchen for the following morning as wall. This all happened around 9 o'clock. We got a phone call in on the control room sandy beach was on the areas and her ski from ABC news he was telling one of our workers year. That there was major news about congressman Chris Collins and used being federally indicted. And when that news was then sent to our newsroom. Everybody just stopped what they were doing stuff whatever landing they were thinking about for the next day. And as a team after we just deal headfirst into this story getting reaction legal analysis and everything up before we dive into all of the analysis. Let's get too caught up to speed with what. Actually happened mishap this news breaking. A written around 9 o'clock on Wednesday morning congressman Chris Collins again charged with securities fraud conspiracy. And lying to the FBI he faces twenty years. In prison and it's all related to his. Position as a board of director for I neat in you know therapeutics which is Australian based Biotech company. I'd been talking now for about three minutes in your ears let's kitchen of the full press conference from the US attorney of the southern district of New York. Jeffrey Berman he details. Everything regarding the indictment. Against and why 27 congressman Chris Collins. Good afternoon. I'm Jeff permit the US attorney for the southern district of two New York. Today we announce criminal charges. Against Christopher Collins. A United States congress. Congressman Collins is charged with insider trading and lying to the FBI. As alleged in the indictment. Congressman Collins. Cheated our market. And our justice system. In two ways. First. He tipped his son to confidential. Corporate information. At the expense of regular investors. And then he lied about it the law enforcement. To covered up. Also charged. Is his son Cameron Collins. And Stephen's our ski. The father of Cameron's fiance. These charges are a reminder. That this is a nation of laws. And that everybody stands equal. Before the bar of justice. Now I'd like to go into the details of the allegations a little more. In addition to serving in the House of Representatives. Congressman Collins was also. On the board of directors. Of the date in the you know therapeutics. A publicly traded company that was developing a drug for multiple sclerosis. In June of 2017. Congressman Collins was told some confidential. And highly sensitive information about the date. Information. That was not yet made public. Namely. That it meets main drug. The drug date was developing. To the be the backbone of its company. With a total failure. This was devastating information for the company. Congressman Collins had an obligation. A legal duty. To keep that information secret. Until that information was released by the company to the public. But he didn't keep it secret. Instead. As alleged he decided to commit a crime. He placed his family and friends about the public good. Congressman Collins with a major investor and innate. And so with this son Cameron. Congressman knew he couldn't show his own shares. For personal. And technical reasons. Including. That he was already under investigation. Regarding innate by the congressional ethics office. The crime he committed. With the tip his son Cameron. So that camera and and a few select others. Could trade on the news while the investing public rename remained in the dark. As the indictment alleges. That's exactly what they did. His son Cameron sold. Cameron's fiance sold. The father of the few Johnson. Czar ski sold. This bizarre skis wife's old. Other friends and relatives sold. And all because congressman Collins violated his duty to keep it dates information secret. And when the new lows of the drug's failure became public. The stock plummeted. In total the conspirators. Used the inside information. To avoid over 750000. Dollars in losses. But congressman Collins. Could keep his crime a secret forever. The FBI asked to interview him. And instead of telling the truth. He lied. And so did Cameron Collins. And showed Stevens. By lying to the FBI. They compounded. Their insider trading crime. With the crime of criminal cover. Now I'd like to go over these two charts. Which summarize some of the allegations. In the indictment. This first chart is a tipping change. That demonstrates. The flow of the illegal. Insider information. And the trading. Illegal trading that information that top of the game. The congressman Collins. He had obligation. As an eight board member when you receive confidential corporate corporate information. To keep that information secret until the company announced to the public. In total disregard of that obligation. Minutes. After congressman Collins receipt of the devastated and highly confidential moot. And aids drug that may help its drug tropical. Congressman Collins. Hit that inside information to his son so that does not portray it. Cameron columns. When he received. Bad legal inside information he did two things. Both of which are legal. He sold stock. Based on that inside information. And avoided 570000. Dollars in losses. And he also took that illegal inside information. And tipped others. He tipped his fiancee. He tipped his fiancee wife. He tips his fiance father. And he tipped the friend. All of whom traded. On that illegal inside information. Stephen's our scheme is beyond his father. Avoided a 143000. Dollars in losses. By trading on that information. And he tipped others. He tipped his brother. He tipped his sister. And he tipped the friend. Two of who traded on the information. One attempted to trade on the information. But wasn't able. In total the conspirators. Avoided losses. Of over 768000. Dollars. All because of the initial. Illegal insider trading tip. By congress a couple of in this chart. We set some of the key allegations. In the indictment. Against a timeline the backdrop of the debate share price. On the evening of June 22. 2017. Congressman Collins was at a congressional picnic. And at 655. You receive an email from the CEO debate. Informing him of the horrendous move is that the drug had failed its trial. 7:10 PM. Congressman Powell responded. To that email so as the indictment alleges. At least at 7:10 PM. Congressman Collins was aware. Of the in socket information. A minute later. Congress Collins attempt called this on. It period of five minutes there are six unsuccessful call. On the seventh call. Them 15 PM as alleged in the indictment. Congress and Collins. Hit a legally tips his son Cameron. About the quote trial results. So that his son Cameron could trade on those results. Later that evening on June 22. After Cameron copilot as the illegal insider trading information. Pat gray columns dry eyes with his fiancee. Is beyond states parents' house. They arrived at the house. At 9:17. PM. Less than twenty minutes later at 9:34 PM. If you got today's bother. Is on the phone with her her. Poker. Beginning the process. Of selling her shares of an eight. The next morning on June 23. At 7:42. AM. Cameron Collins begins the process. Of selling hit shares of an eight. During June 23. June 20 the X Cameron Collins cells approximately one. Point 39 million shares of an eight. Prior to the market close. Of June 26. After the market closes. Nate announces to the public that its drug had failed the trial. And the next day. The drug price the price of an eight. Balls off clip. It dropped 92%. In value in a single that. This was the drop. I was anticipated. By the co conspirators. This with the drop in value. At the co conspirators avoided by selling their shares for the public announcement. And they could only sell those shares by virtue of the initial. Tip of inside information. By congressman columns. Case of this type of significant. Obviously involves the FCC. And the FBI. And their representatives are standing up here will meet today. To my left. My good friend bill Sweeney. The assistant director in charge of the FBI's. New York field office. And to the far left is John Brosnan. The special agent in charge. Of the FBI New York office criminal division. The FBI's work on this case was spectacular. And I want to thank them for their professionalism and dedication. We work with the FBI on so many important cases. That is always a privilege. To the left of bill this is Stephanie of making it. At the peak and who are co directors. Of the FCC's. Division of enforcement. I want to thank them and yes he's seeing for their hard work on this matter. Last I want to acknowledge and thank the career prosecutors in my office handling the case. To my right is Max Nicholas Damian Williams. Bob Allen Scott Hartman. And the coach chiefs of our securities and commodities fraud task force. Tim Chris analysts and Jason talent. Congressman. Collins. Who by virtue of its office. Helps to write the laws of our nation. Acted. As if the law didn't apply to him. The charges today. Demonstrate once again. That no matter what the crime. And a matter who committed it. We stand committed. In the pursuit of justice. Without fear or favor. I would now like to invite to the podium. Bill Sweeney. Thank Geoffrey good afternoon everybody. US representative Christopher Collins sat on and its board of directors. For a period of more than three years. Spanning the run up to the drug trial announcement in mid 20s17. Collins himself who was the company's largest shareholder. Bitter about the summer 2017. But drug designed to treated to develop a debilitating form of multiple sclerosis. And entered the late stages of a feast to be clinical trial. This drug MIS force sixteen was the only viable drug in the pipeline foreign. This is significant. In that the company's value was nearly completely wrapped up in the success of the clinical trial and a subsequent phase three trial. On the evening of June 22 Tony seventeen. Collins received an email informing him that MIS for sixteen. Had failed its clinical trial. Electronic records indicate his initial shock at having received the news. The drug once anticipated to hold billions of dollar in value would now be to cause a significant financial loss Bernie. And of course it's investors. Many of whom shared a personal relationship with congressman Collins. What comps ball the congressman was legally bound to keep his information compliments shall. Until the trial results were released in investing public four days later on June 26. We allege he did not. The indictment charges a Collins immediately began contacting the family and friends he bought into the fold. This set off a ripple effect in which many investors directly or indirectly connected to congressman Collins were notified. Most of them quickly sold their shares. And its stock price plummeted 92%. On the first trading day following the public announcement. But Collins conspirator succeed themselves over 750000. Dollars in losses. Collins himself having been prohibited from selling his shares for various reasons did not avoid a financial loss. Despite this fact his alleged actions bought him face to face with federal agents who have become aware of the crime that have been committed. When questioned by law enforcement about the alleged dealings. Congressman Collins his son Cameron. Cameron's fiancee his father Stephen's our ski lied plain and simple. Today they are charged with insider trading and lying to federal law enforcement agents. While Collins may have thought to giving his family and friends who heads up about material. Nonpublic information. Would benefit them in the long run. Here's a better inside tips for those who think they can play by different set of rules. Access to this kind of information carries with it significant responsibility. Especially for those in society who hold a position of trust. Act honorably and in accordance with the law and do not lie to special agents of the FBI. Many thanks always sore partners especially Jeff and your team of career prosecutors gentlemen your work has been exceptional. To the SEC a person like that thanks Stephanie Steve for your work your team has also been outstanding. To John and jock and so we are white collar branch. Twenty your team especially since investigators. I wanna six extend my personal appreciation. Summer standing in the back in the shadows but to neck jog Yelena. And Tracy your work has been exceptional what you do in the community matters and makes a difference thank you. Like to invite to the podium Stephanie of making him. Co director of enforcement at the SEC. Anxious. Afternoon. As Jeff said my name is Stephanie they can co director of the SEC's division of enforcement and before it began. My remarks I'd like to also thank US attorney Jeff Berman and his prosecutors. As well as the FBI who worked on this matter further assistance. Today the SEC filed securities fraud charges against congressman Christopher Collins his son Cameron Collins and three others. Alleging that they engaged in insider trading ahead of an eight in the you know therapeutics announcement of negative drug trial results in June 2017. The SEC's complaint alleged that Christopher Collins learned of the negative news in his capacity as a member of any sport of directors. And quickly tipped Cameron Collins who held a large position in any stock. In addition to Karen Collins selling nearly one point four million. Of his own any shares he is alleged to have tipped his girlfriend defendant Lawrence our ski. Her mother defendant are these are ski and her father defendant Stevens. The SEC further alleges that Stevens. The SEC's complaint seek to sportsman of the defendants' ill gotten gains interest penalties and permanent injunction this. The SEC also seeks an order barring Christopher Collins from serving as an officer or director of public company. Being a director of a public company is a privilege a privilege that comes with responsibilities. Christopher Collins is alleged to have abused this privilege. And preached his responsibilities. Buying gauging in illegal insider trading. Defendants Lawrence our ski and aren't these are ski pole in the SEC alleges each avoided losses. By selling all of their any shares in advance of the company's negative announcement. At each agreed to settle the charges against them. By consenting to injunctions disgorge their ill gotten gains and paying civil penalties. Lawrence our ski he's certified public accountants. Has also agreed to be suspended from practicing before the commission as an accountant for purity at least five years. Accountants who engage in illegal insider trading should not serve in the role of gatekeeper in our securities markets. The settlements are subject to court approval. And now let me turn things over to Stephen piquant co director of the enforcement division for some additional remarks. And thank you Stephanie Tom first off I'd like to commend the excellent work of the SEC staff members. Who have of this investigation and who handled litigation going forward. There William Mack's Hathaway. Kobe steel. Patrick McCloskey. Caroline well chance Melissa Armstrong ensure prompt him. The SEC's insider trading enforcement program is a great success. We have successfully detected and pursued insider trading schemes of all shapes and sizes. From massive international schemes to trade on information stolen through cyber intrusions. To those perpetrated. By a single faceless insider. In the past five years alone thanks to the staff's hard work. It's ever developing expertise. And its use of highly effective proprietary analytical tools. The FCC has filed more than 250. Insider trading cases against more than 450. Individuals. Today's case is another example of the staff's dedication and know how. At the heart of this action as described in our complaint. Is it tipping chain that extends from Christopher Collins to his son Cameron Collins to members of bizarre schemes gambling and beyond. When members of the SEC's market abuse unit. A specialized group with in the division of enforcement. Uncovered suspicious trading by Cameron Collins they did not stop there. As you heard they identified well timed trades by people close to him including his girlfriend her mother. Father and her father's relatives and friend. In addition to finding the trading at the core this action the staff who worked on this matter. Working alongside the talented prosecutors here in southern district of New York. And the dedicated men and women of the FBI. Developed a thorough and compelling evidentiary record. That record which is summarized in the SEC's complaints consists of emails and text messages. Cell phone records. Trading data. Communications. Including recorded calls with brokerage firms IP logon information. And other. It reflects frantic efforts by tempers to convey inside information. And traders to sell their any chairs but for the company's negative news announcement. As alleged in our complaints. That defendants and their two peas accounted for over half of the nation's entire trading volume on the first trading day. After they got the news and Cameron Collins himself account for more than half of all the unique shares sold on the next treating. Insider trading is not just illegal. It is also rose. It threatens investor confidence in the fairness and integrity of our markets. For our capital markets to retain their place as the envy of the world. The FCC and its law enforcement colleagues must be vigilant in policing against this misconduct. Those who would engage in the sort of behavior should know. That we will continue to devote our resources. Our expertise and our energy to finding them and seeking to hold them accountable. Thank you. We'll take your questions. This is well here. There's no allegations of a wiretap in this case. And with respect to the details of the evidence that are not contained in the indictment. DOJ policy restricts me the four corners indictments on not gonna get him to prove at trial. That is not an aspect of this indictment. Had no comment. Here. Well the in the then it. The indictment alleges that on the evening of June 22 2017. When congressman Collins received the information. Via an email from the CEO Rene. That he was at the congressional picnic. And that it was from that picnic. That he then I tried to reach his son. Six attempts and five minutes and then on the seventh attempt he got through to a son and he. As alleged in the indictment if you illegally. Relayed the results of that drug tests so that his son. Could trade on that information and that was all done as alleged in the indictment. At the congressional. Picnic. I the indictment does not specify. The phone that he used and I don't think I'm I'm allowed DOJ policy go outside the four corners of the indictment. Had no comment on this. Here. I'm not gonna yeah I'm not good to get into how this matter was referred to our office hits. Aren't as it is indeed true. He completes. It's education it's not good. I go about proving that aids patient knowing where you can get through. Are there tears when it. Well yeah the indictment alleges that the congressman conveyed the legal inside information. Anticipating that his son. Was going to trade on that information and I can't get into the evidence at trial right now I can't go beyond the four corners of the indictment. I. That. News political. Well politics does not enter into our decision making. On them are charging a case. We bring a case when the case is ready to be brought. That being said we are cognizant. Of the prudential concerns. Surrounding. An election. But you know here we are months away from the election those concerns do not apply. Side. The and I you know it's premature to discuss those matters. I have I have no comment on. The pithy things. Visited. Well you know the SEC has its investigation into civil. Investigation they're conducting were conducting a criminal. Investigation with a different stand your proof. And so I'm not getting into the various factors that go into our decisions on whether to charge or not charge someone but. You know there. They're they're they're different investigations. We have not. At a press conference happened net right around 12 o'clock on Wednesday afternoon Collins. A couple hours later pled not guilty in Manhattan federal court and he was arrested. He immediately posted the 500000. Dollar bail set by the judge. And he left the courtroom flanked by his attorney you know you've always seen these videos online where people leave decorum and a get bombarded by the media. New York City reporters were waiting at the bottom steps of the federal courthouse. And they had a podium that was set up a lot of them had their Mike flags in that little podium area. Instead of congressman Collins and his attorney going to the podium and addressing the reporters instead they took a hard left right towards the street and right into a car Collins was asked. A bombardment of questions by the New York City media he did not answer everything he simply went into his car. And then went to what was presumably the airport right after that because. He was going to come to buffalo and saying that he's gonna hold a press conference where you're given the idea that. Maybe he'll answer some questions about this. He flew from New York City to buffalo was scheduled to hold that press conference at 630. At the embassy suites on Delaware avenue in the city of buffalo. The press conference didn't begin until just before 8 o'clock. He was quietly. This Peter. Thank you offer coming today be targets started most of you here know my wife Mary of over thirty years thanks for being here. National press may not know Mary sue. As well as our local press. So over the years I've often talked about the American dream. I'm extremely fortunate. In that I have lived it. It started for me when I borrowed and started scraping together every dollar I could. To buy the Westinghouse gear division here in buffalo. And move it to Niagara Falls under a new name. Not at all year. I'm proud that we put hundreds of people who work or still working there today. After telling Donald here in 1997. I ran for congress in 1998. Up in the Niagara Falls area. Knowing that my business experience would benefit the citizens of New York in offer a new perspective. In congress. After being humbled in that race I spent the next ten years as a not to put nor. Investing in and helping to stabilize. Doesn't a bankrupt and financially distressed companies. Saving and creating. Hundreds of jobs here in Western New York. In 2007. I was recruited to run for Erie county executive. To turn around the effective bankrupt county. I was elected and by applying the principles of lean six sigma. Turned around the county finances and eighteen short months all the while honoring my campaign pledge to work. For one dollar a month. One of the many companies I invested in it was a small drug development company and they immunized therapeutics. It was working on a unique cure for HIV patients suffering with aids. Ultimately that focus shifted to a treatment for secondary progressive. Multiple sclerosis. Which is one of the deadliest autoimmune diseases known to mankind. My affiliation with a company is why we are here today. I've been an avid and unwavering supporter of innate in you know therapeutics for more than fifteen years. Long before I came to congress or was elected county executive here in Erie county. Over this time my affiliation with the innate immunity therapeutics has prompted attacks on me. My integrity. And my investment by my political opponents. I believed in the company and still do. And in the potential of a drug that had the real possibility. Of improving the treatment option for secondary progressive multiple sclerosis. Patience. Which is about the most debilitating disease known to mankind. And something that I saw firsthand. Affect a close family member. Over the years I invested heavily in an eight became the company's largest shareholder. And in uncompensated. Member of its board of directors. Without my investment instead fast financial support the company would have gone under. Bringing with it a premature. End to a drug. I truly thought would revolutionize treatment options for secondary progressive Emmons. Of all the things I wanted to accomplish in my life. Finding a cure for secondary progressive MS was at the top of the list. After years of blood sweat and tears we firmly believed we were on the verge of a medical breakthrough. Sadly despite showing great initial promise the drug was ultimately found to be unsuccessful. Which is a setback for all of those suffering from this deadly disease. Many have speculated about my relationship with the me here at the simple facts. My connections with a company are well known. I believe I acted properly and within the law at all times with regard to my affiliation with a Nate. Throughout my tenure in congress I have followed all rules and all ethical guidelines. When it comes to my personal investments including those. With an eight. When it became clear that the drug guy and others believed him. Fell short of our hopes and expectations. I held on to my shares rather than sell them. As a result of the significant investment I made in the company worth millions of dollars. Were wiped out. That's okay that's the risk I talk. My real concern lies with the millions of people suffering from secondary progressive MS who took this day struggle. Without lifesaving treatments for their deadly disease. I've said it before and I'll say it again I am proud of my affiliation with a knee. I may have lost most of the money that I invested in the company but I took the chance to bring relief. To those who deal with the dreadful disease. A secondary progressive and mass everyday. The charges that have been levied against me are meritless. And I will mount a vigorous defense. In court to clear my name. I look forward to being fully vindicated. And exonerate. Andy and me and all questions relating to my affiliation. With an eight. I've spent the last ten years in public service is the Erie county executive and as a member of congress. I've also spent many years volunteering to give back to my community. Whether it was a member of the Federal Reserve Bank small Business Advisory Council. Member of the board of trustees of Ted Maher mercy hospital. Or is a long time enter the small businesses at the center for entrepreneurial leadership at SUNY UB. The public knows my dedication. To Western New York. Because my focus is to defeat the charges in court after today. I will not address any issues related to an eight and you know therapeutics. Outside of the courtroom. As I fight to clear my name rest assured I will continue to work hard for the people and constituents of the 27 congressional district. A new York and I will remain on the ballot running for reelection. This November. Thank you very much. And have a great night. The last month ago. I think now there are several reasons why this. Interview was panned by you to reporters by constituents. One of the reasons he didn't take any questions after he said it was going to be a press conference and you heard the one reporter on Howard Owens from Batavia saying that he drove all the way from Batavia which is not a quick ride over. He didn't get his questions answered. None of us had any of our questions answered by another reason why this session was totally pan by everybody is because earlier in the day. Colin sent out a statement to constituents a centrally saying the same thing so he comes to buffalo makes everybody way in anticipation. And then doesn't give you any new information he said he's not going to be addressing any questions about in the Mena therapeutics will. But at the very least if your constituent you can ask well why not just say. I'll take a couple questions on the topic but then just not answer at the very least he could say he held a press conference there. This more of an announcement by congressman Chris Collins so I know we've gone through a lot of this you can always. Rewind it listen to it that way you can hear all the separate interviews on demand over on WB EN dot com we're gonna take a quick break when we come back we're on full analysis of everything that happened from. The legal ramifications. The political ramifications. As well as a look of insider trading and talks about this stock act that's all coming up this is 716 week in review. Seems easy she's hurry here I guess you can get eight deltic kitchen plaza and Camby turned around through Amazon's Alexa voice assistant. These things are unbelievable however I live without them I really don't understand. Private label push to Amazon has been building its own brands of course you're driving Amazon wanted to go over the world. Amazon could be your next superhero in a bad man movie Georgia thanks to. CA DT this week days now until we don't have news radio 930. Stories of the year back right before we start recording this podcasts today. Come into our newsroom and I kind of survey of filling what it's something that. Team some good news that thrown out some of the stories that mentioned before that. And convictions so. Listen you know him how their political ramifications for governor you can. Normal other stories won't follow the Shawn McCoy and that incident they had his home. It Georgia. And there's been other major stories as well. But this one at least politically. The biggest story in western new York and 118. So far congressman Chris Collins. Indicted by a federal grand jury and let's kick in to some of the legal ramifications from this right after we found out the news about Collins is. Indictment we reached out to WB and legal analyst Paul came Brea came react gave sandy beach the 411 on what's happening with this case against congressman Chris Collins give me your. Top of the mind the thoughts on this. Well I think that. It's clear to at least people in my profession that. Great work done investigation. There was a good possibility of an incitement. And so I'm not exactly surprised. Have a chance to read part of it. You know it's typical little insider trading allegations. Conspiracy. And I'm. Forfeiture counts when they basically say appear convicted and more true portrait. All the proceeds. So that's. Basically had at first or I didn't actually had The Who. Made that statement that you just. It says his lawyer but his lawyer is a name is not mentioned. I'm glad I guess is so. Washington last year treaty pollution problem or I don't know it you get representation that way if there. For the contractual question. Do you see this. Obviously of if found guilty and were speculating now obvious. Lieber you know Moala certainly. Would this possibly lead to were removed from office or is this just they find situation. Would there be any jail time involved if we're guilty of murder was found a way to you see this going punitive Hillary. All of the above. While it it could be all of those. On the federal side the penalties are always. You should you know they have. Cute. You're talking ten years twenty years back problems. Obviously because he's an increase. Convicted and got saturated or people being able to continue. As a congressman sort bearish years. The federal side it's very cheers. Manhattan is not always. The most favorable place. Four jury verdict. As we've seen a number of tribes over and over. How does that how does the government improving in attempting to prove their case. How to they are drug timeline is a strictly on the purchase of stock. Another trading of the saarc part of a narrow it down to something they can prove in court. Well the indictment lists a number of emails. And communications. Back and forth among the park show it it's clear that what they're going to look at it is. Was there flows that are trading was trading based on. So called insider information. Something that we're out of them all where available a you know that kind of been the focus of the investigation. From the very beginning when they started. Talking about all this and I am pretty sure Collins is up for reelection. Oh yes I I think I've heard that is there any way shape or form bit of defense attorney would bring up. The political side of any kind of an investigation. And or indictment or is that totally separate from what we're talking about now. Now I think that if there's up feeling that there's you know this is politically motivated. Actually a legitimate issues raised. It is. Technically. Part of the elements so hard. On the other hand what a lot of pressure. That can be exercised in cases like this. Many of can be handled civilly. Although as you recall. List Marcus Stewart and several others. Insider trading is not exactly. You know just ignore all the stories historic guitar. Now there is there was a lot made when they presidential campaign was going on. A bug information about Hillary Clinton. If anybody had it when a group would be released and there was a real concern that any information released just before an election. Would day in footloose could possibly influence. That election. Would there be any concern this time. Because of the timeline of when this was released. Yeah usher these notes also a valid observation here to show it or should timing of this I think. They say oh well you know. If we really. We're going to do something like that we would've. You know letter about September. Or October. I suppose. You know now and August. It's still has the same impact. And they're actively campaign an active candidate. They're challenging problems and obviously that's gonna have a huge. Is ability to be reelected but I think that's the least at this. Do you think and this is just speculation. Do you think the president would make it will make any public. Speculation. On the future of that environment will he make any idea any tweets. Any formal announcement or will he stay hands off. Well you know usually. Answer to that would be to say what what this president I sure probably happened dollar. And I know. Present it was a close county that Europeans didn't think about it Collins. The first congressional effort to endorse it true and kind of appears. PR guy in government if you will. Always defending everything the president did a lost art. And so rupture in the present all ship so. Yes some major legal ramifications. Against congressman Chris Collins he has said that he is not going to be addressing these and any future interviews. In fact it's highly unlikely that he's gonna hold any type of interview between now and win the election happens in November. There's also political ramifications involved in this it's been a pretty publicized race if you follows both neat nick Murray and Chris Collins on social media nick Murray's the democratic challenger and when you look at the situations between. Collins which he's the incumbent and he has like one point three million dollars in his war chest. Compared to Nathan nick Murray who's been criticized for having not even a 100000 dollars in his war chest. He apparently doesn't even live in the NY 27 district he's the town supervisor for Grand Island. A couple hours after the indictment was. Formally announced. McMurray held a press conference on lakeshore road in Hamburg reacting to the news about congressman Chris Collins let's head over to that right now. I am humbled to be. A candidate for this position among humbled. From all people I've met the background parties the pool parties the fairgrounds we've had a great. Time crisscrossing the state and seeing so many wonderful and good and decent people. I am humbled also because I come from humble background and to have this opportunity to run for this office. It's a great honor and I feel great duty. You do the best that I can. I am disappointed in San however. I take no joy. In this terrible things we heard today. And I would be wrong if our article quote that your personal and his family you're going through great amount of turmoil right now. And I'm not a person that takes Julian failures of others. I'd rather celebrate the success in the accomplishments of others. We must acknowledge the reality. Of what occurred. Today was a seal on a confirmation. Of what's so when he tried to keep secret and pretend wasn't true. The confirmation. Of what many of known and try to get out but it's finally widely known by the public. Chris Collins used his position. Not to serve the public. To serve himself. It political friends. And his family. While he was bragging about making millionaires in DC. Using the people's house for that purpose. He was not serving the people like 27. He was not certain that people of Hamburg. Of all end of Warsaw. Of this district the people that I have met. His behavior does not represent the values that I've seen and I know exist here. Why 27 is the place of good and decent people. People work hard. But it's its own confirmation of something else we all know it's true. That for many of us. Many of us just don't make it. Many of us are taken advantage of it worked their whole life to see nothing but debt. They worked their whole life should never have access to proper pension and health care stole from. It worked their whole lives and they never have the secret opportunities but Chris provided. To his friends and family. This needs to change. The cheaters. In this game. He'd be thrown out. We in America that is fair and decent and good. But the people have been like 27. And I promise to provide that type of leadership. But let's not make a mistake. The cheaters are still gonna fight. They're still gonna try to cheat. They're gonna try to label me someone who's been most multi supervisor. Was kept a balanced budget was increased surpluses. Who was led us to the highest credit rating a talent upper hand with any scout with the father husband Dan. Then on some type radical because I would the next morning. When is this gain. A party affiliation. And and what are we to scalable for the best person. We need a system. Not for cheaters. Not for someone saying we all knew because I am in our next my name. No one owns your vote. My message remains the same dollars that was my first started this campaign or when I first at my press conference here and nobody showed up. Then I am not only I am not a bought it I'm not afraid of anybody who. Yeah I. It's going to be a serious flight because we know how much they fight we know what I was schemes that poll to make sure they have an advantage over other people. We know how they'll try to trick in twist the game. We have to fight back. So what I'm here asking people that liked when he says that he blood medical's payers in the background backyard parties. With people we've met all across this region the people who work every day. I'm asking you might vote for someone who's gonna work and like for you. I'm asking you vote for me. Also say is. Americas for all of us. If you if you have heard me speak before you don't know my message to ask it on my website is a boat McMurray dot com. You can go to donate slot part of the citing put on your partner sites this has been as grass roots is that it's. No one thought we had a chance that without we're in this but we're gonna be this at the end and we're gonna fight for you not just until election is over. While we're at DC you'll know where I am ICU I'll be with you. Without any questions you might have. I think Chris Kalish it should learn for what happened today and look at his heart and do the right thing. That's his decision to make and leave it up to him but I know what I would 2006. Hearing him. My goodness me quite a morning. Would I raise more as more and we have no race. I. And dark sources is coming from Ivan ten dollars acts it's gotten from people across street. It's an exciting time we're we're feeling more and every single second. Oh. It's that it I think we know what you would do if a patient type it's Easter it lets everybody others understand. This is unprecedented. It's something that doesn't happen. We're it's a sad reality that this regions. That we also are. Is represented by someone who brings change. And we mean define who we need to bring back dignity. To this position and bring back the honor the people Western Europe answer. I'm convinced he. Who were once college sports period turned off by this news today and he basically go to FiOS what. Because look at my history I'm not someone who worked my way up this system on some came out of nowhere a couple of years ago I you know. I was in politics. I didn't grow up with a picture of John F. Kennedy on the launch your picture later bird on the wall. I had no dreams of being a big time politician I got into this because I wanted to help my community. I put my whole heart and serve my community community with a heck of a lot of Republicans. A lot of Republicans that that believe in me and support me in the diet that I guess my friend's house who were Brothers and sisters we. And I were present everybody I'm not someone. Who is going to. My values are your guys I goodness reaching camping and and swimming in and being part of this place. And I will fight for the people Western New York I understand them my family's here I'm one of them. And he would not. I. We listen we have sickle sport we can get which is going to be a tough race no matter what I talked about it before. They're gonna keep coming at us they're gonna try to use their powers and their money used to have more cash wherever gonna have to twist the story and make it and it's something it's not. Now whoever supports me I'll take that support we need to fight for us to win this race but I think right now I didn't office I'm not saying things like Chris Allen said. I'm fighting for my donors only fight for the people what's New York people leave right here. And if you look at my record in my history and who like him you can see capture and you can see that's what I'm going to be. Oh. No I have not I have not he's right the last time I spoke to the governor he was asking me to get out of the race so cut the but emirates Iran LT governor if we will work on similar things that are gonna help the Western New York I'm more than happy to do that I want to fight for what's right. For the people who live here for my friends my neighbor. And the people that I love. It. I haven't had the opportunity to pursue that. But I tell you what we knew this was common. This is not some big surprise I'm talking about this is the first leg on the race I got the race because that is a look at the guy representing us. Who is trying to steal and shoot us. From. The problem I have is the only people close their eyes to it. I you know I was receiving. Messages are more comments from the leadership. Of missing people at him saying this is old lying garbage and how he's gonna be vindicated by the people of Western New York. If the people of Western New York indicate this man for what he's done in the history is not just this issue but the net many many issues that are building up. Now but I believe in the people like 27 I think we're gonna have a victory it's going to be historic big. Guess what we're gonna she had a victory for the people like 27 for years to come because I'm that good to see and remember Greg come from. Remember I'm 17 growth hungry mom raised is by myself I'm going to be that same player I was. And Sweeney street arsenal want to. For the rest of my life. I'm sticking my message I don't care who replaced with I'm on both on and all of look at a person I grew up. You know are looking at Ronald Reagan for equally represented in America on ways. But it resurrect Ronald Reagan that's up a series 21 years old comes back I'm still gonna win this race outrun out. I. Oh yes I mean we we were talking about it enough that people listen every time we brought it up we get the same message that's not. If you didn't do it's made up what did you see that press conference this morning. I look at those facts did you know prosecutors. They do not to get their message like that unless they are. They are very confident. Let's understand what happened here guys. She used his position to enrich himself. It all of these. Surrogates and these people that help them if prop them up should also be held accountable. If this wouldn't have come out. He very malware may may have to school student. Now it's time for us to ask ourselves is this the type of leadership we want and the people that backed him up can you trust them can you trust in the back somebody else up. And I think the answer is no. If you forget anything about this today it was this remember what I am witnessing. Remember why am I remembered my message this middle class middle class and middle class all the fun. Middle class off pensions are you fighting for the people was junior will be fighting for my neighbors and the people that just aren't quite making it. And I was looking out for them. That's in tax cuts that creek to truly in our country. That puts Social Security Medicare risk. And while people here. We're working three jobs and still look Berkshire it's like to see them. We need someone who understands what that's like so what does get out there fight for them. I'm that person. We've seen in other races across the country that country. But all the voters he's the very forgiving. And and Willis matter. You know what I think in this country I think in this country party affiliation is less less important. We see it's not that it's not a left right divide anymore it's the power no power but I've. And offered. And I think I ought to be represent the people don't have power your voice. The system is out of whack the leverage is not act. We need someone is gonna get in the room someone understands all this stuff works so willing to get dirty and he's not afraid of anybody. They say I'm gonna fight for you I'm gonna fight for you hammer. Reflecting Orchard Park on five but it would likely candidate I've been to these places that many times I thought that many people don't want I know what they're going through. The people on Wall Street the Chris Collins of the world insider traders the world they have enough people fight for. We need some people fight for us. I'm going to be that person with these good people behind me we can do it and they're gonna keep me honest they're gonna keep me true because they're here remember me. Remember me how I started and how it. How I was lucky to be drawn into this like kept true how can I dark money. How I kept true to my supporters like it shoot the potluck. Picnic methods of my campaign. And that's what we're gonna be for all on and go forward. It. There. I'm glad you asked that. That's history include New York you guys understand. That's in the works. And it. Like Tony seventies to include your city workers was asked this morning. Eight shifted and changed over the last 200 years all kinds of weird way the fact is that includes some plays rightly right now is there a line. He's like 27 house I don't. My my family across the district that involved in the arcade and Acadia. We have people crosses my ancestors came here and they built the Erie Canal. That canal water flows in my veins for this I'm not than might when he said that he'll. I clearly am this is my people I started here. Your community college and I were justly up. What I O'Costa. Sister aunt is it strange exotic land. My home. A flight for. And questions. We get listen. Thank you for comment when you say overtime on America deserves better let's go. One of the questions that still remains with Mick Murray is is he going to generate enough support in and Y 272 up and congressman Chris Collins. He has a significant financial disadvantage. And we don't know the exact amount that has been released we will find out the number that. He's raised between now and when the next FEC filings come out in October. So it's going to be quite a bit at times so will have to wait and see how things fair for a Nathan nick Murray buffer campaign that was widely considered as. Really dead on arrival it's been injected new life so this is going to be one of the interesting races that come on down. Will the national Democrats start investing a lot of money into the 27 congressional district. Or. We also have to look at how much support is there still gonna be for congressman Chris Collins despite the accusations against him. Now couple people that we really want to reach out to get their perspective on everything that's happening. Are at the local chairman's for the Erie county Democrats and the chairman for the Erie county Republicans. Jeremy is a homers ahead of the Democrats he's the person who. When you look at anybody who's going to be on the ballot in November he's the man who decides who it is let's start first with journeys on animal go right into. A morning conversation with the nick laying worthy who's the GOP chairman. Reacting to everything that's happened you'll notice two different partisan tones when it comes in the indictment of congressman Chris Collins. Matthew Moran our reporter here at WB yen was at this about the league's elder and handling worthy speaking with a new morning with Susan rose and Brian as a ski. This is the latest sad chapter in the career of Amanda was consistently used public office to enrich himself. Rather than to improve the lives of those that he is supposed to represented. He's bragged on the floor of the House of Representatives. Took the people's house. That he he's made his family and friends rich. Well refusing to debate me McMurray and refusing to meet with his constituents of the 27 district. Chris Collins is too busy killing health care for hard working Americans while serving as wealthy donors with tax cuts. That hurt kill the middle class and saddle future generations with trillions of dollars in new debt. We may not only hear from Chris Collins threw his testimony. These allegations supported by a bipartisan. Congressional ethics panel have been well known for more than a year. And yet congressional and local Republicans continue to support Chris Collins. Today should be a clear signal that no one is above the law and those who took part in this deal. Which whether local or national mosque during brought to light and must be brought to justice. So our question here today is who from our community has profited from this other than Chris Collins. And. We need to have a discussion about the representation. For. Western New York in congress. We need someone who is going to represented the working class citizens of the 27 district not. Fill the pockets of their cronies. Not go to Washington and make laws. That are gonna directly affect their pocketbook. We've seen that with Chris Collins. What we need is Nate McMurray. We haven't challenger in this race make McMurray who comes from humble means who was worked hard who is. Gotten very little support from the national groups. And he needs our help. But the community needs me more and more importantly. And Western New York needs named Marie what happened today. Having the congressman arrested is as an embarrassment to our community. And and it needs to be rectified. And so with that I'll take your questions I can probably guess the first five. I'll open the open it up to questions. Here. I would I think. That none of this none of this is really a surprise or shouldn't be a surprise to those who follow. The media. There was a political article less than a year ago that said that Chris Collins was overheard on the floor. Of congress talking about all the millionaires that he has made in Western New York. Com that really reeks of insider trading that really reeks of improper behavior. Again the bipartisan. Congressional ethics committee has had an open investigation. For very long time here. And something else that's being missed by the media because I can I can already hear the echo chamber of of supporters of Chris Collins saying this is a witch hunt. This is a witch hunt. Today Chris Collins was indicted by a trump appointee. In New York are trump appointees. And the bipartisan. Ethics Commission said there's something to be seen here there's something something to look for. So I I think when supervisor McMurray says that this wasn't a surprise. I think that's what he meant by that. I think he showed. I think he should step down and not because of any other reason but. He is clearly now embroiled in this this personal battle with his finances and in a personal legal struggle. How is he gonna represented 27 district. While. Handling his own personal. Legal problems it's it's just not gonna happen. He ought to step now because it's an embarrassment and he is incapable of representing this district. News. Well I think what today shows is what we've been talking about all along is that Chris Collins is out to line his pockets make his cronies rich he could care less about the constituents of the 27 district. And so in that case. I would find it hard to believe that anyone in the 27 district would vote for him in November. So we believe that with that record. With the width with who we have running mate McMurray. That we have a good chances to take this seat and win it and in November and return it to the people. There is clearly a crisis in confidence in government in in our elected officials and so we need to hold them accountable and they need to hold themselves accountable. And I think those were calling for Chris Collins to resign are asking him to hold himself accountable right now. And this is just you know it is it it is a shame. On our community that that he has done this and he's done it. Blatantly he's done it in the media I'm making lots of millionaires and is in in Western New York yes your friends. But what are you doing for our constituents. And so that that. The answer is of course this hurts. But if people don't start to get in false. Run for office themselves take part of a campaign whether it be Democrats or Republicans. We're gonna still have the same quality of candidates running for office and getting in. Like Chris Collins who wants to just. Go there and and make money forms of. I am very surprised. LE that he. Sent out an email. Maybe an hour or two ago asking for support of his supporters. Saying you know there's nothing to see here. I'm gonna run and I'm gonna prove that I can I'm going to be vindicated in my good name will be restored. I am surprised that he has the gall to do that but I'm not that shocked we're living in a world where. Anything goes now in politics and government you can say and do whatever you want you can make allegations of anything you can make things up. And so I I. I think it's a little early. For anyone to make a decision here including Chris Collins but I think he's gonna have to think long and hard. Now as far as I know there is really no way to have him get off the ballot. That his name will appear on the November ballot. Which is a shame again. But I think that's that's the problem. Well. As I said he he is claiming that he's gonna run in and there that's callers to it but. This has happened and other states it's happened across the country where even someone has been deceased and remain on the ballot so it's not like it's anything that New Yorkers. You know special. Well I think so I may McMurray from the minute he was endorsed has been out of the community. This is it fast just pick it takes three hours to drive from one end of the other more. He's been out in the community has been going to events across Western New York talking to voters he's had a very good response at these events. He has. He's been able to raise a lot of small dollar donations off until this morning but apparently he's been able to do very well this morning as well so I I think. Given what happened today with the with the congressman being arrested. And given the fact that knee has laid a good round work. Of getting out to events and putting himself out there to speak to the community and have a conversation with them about. Their challenges and what issues. Mattered to them most I think he has a chance to win this race it's still an uphill battle. I'm given that that his opponent is going to say or do anything to get out of this match. To pull out of this slide. And and just you know throw mud and make it impossible for me to have a real chance of winning this thing. But I think the voters in the 27 district are smarter than that. And I think they see today with the arrest of congressman Collins that there really is. Nothing to this guy except that he's there to enrich himself. If you've got to remember he was the county executive and he lost that race because he was slashing and burning. Our cultural our libraries and people didn't want that kind of got. He wanted to dictate from the sixteenth floor and not come out and speak to the community back bad and the voters of Erie county threw him out. And now. He's been blatantly breaking the law. Blatantly. Bending in manipulating the rules for his own benefit. And so it's very hard for me to believe that the 27 district will support Chris Collins. But as I said he is already sending out fundraising appeals to continue. I'm running so that's that's going to be his decision. Joining us on the line now is Erie county Republican Party chair nickel lying worthy nick have you spoken with Chris Collins sense is this news broke yesterday. I have not talked to congressman pallone foursome I'm really excited you know I was kind of taken by surprise history just like everybody else. Did you try to region yesterday or denounce any contact went on his part was made to try to reach you. The law I mean I don't believe my site you know tried contact each other you know he was obviously very occupied history given. Travel in and it is time in New York City. You know as a very difficult thing. What. Is your role going forward now because obviously this race that's we've heard from all of our analysts was a pretty solidly. In a Republican districts they were expecting Chris counts to kind of slow walk his way. To a victory mean people now saying it's absolutely in contention what changes in your role going into November. Well I mean I little. It is smooth can run the Republican Party in in overseas you know all of we came here and how they interact with each other. You know in terms of weak federal race the county Republican Party can have in March due date involvement because funding. It week to corporate donations federal campaign get to be completely independent corporate donations. Therefore. That the party cannot expend on behalf of the candidate that's quite an actual committee come into these sorts of relations. And you know are you columns that are marked closely since he's going to remain a candidate let me take it is. Where to eat at this point. I ain't even the Purina nominations Colmes. You know with primary date being June 26. I believe. Possible in the rearview mirror self employment she intends to remain candidate he controls that. Nick. What did you make of his news conference last night we talked to Michael conclude this morning who said he didn't think that the congressman did himself any favors. I'm not sure are and why his attorneys had him all the news conference ball off I deeply he wanted to. See his peaceably talk a lot about biographical information business career. In the street in this. In this indictment doesn't involve public service it's it's really about his private companies. In Seoul and he is so you're in a contract situation here where you talk about his career and in the private sector and in his investments which. Obviously we've all won't prolong time which column do a lot of business. Arrangements in in his a lot of successful companies but this is obviously you know gonna cut you some type. In. You know he stood now. Go like this so in court and in India what he can't he's only going to try to clear his name I think that is orbit or to try to do that. What would it be possible at this point for another name to be put on the ballot if Collins did pull out of the race. Although I know and turns are researching all options given that we we didn't know what you know corruption I don't position was going to be in and what have not had those conversations. You know in this city clearly a situation. I do know there are avenues to question on the ballot but I'm not a positive. How serious of a case to think this is. And what would your advice beat to congressman talent would you want him to stay in or would you want him to resign. I accurately you I assume at some point I will talk to are you content will share that conversation that I mean this news. That it's important that everybody saw. Really taken aback by India as you said this is compass. We'd be ready. You know country owns a lot about this district. A lot widely outside of you in the Erie county all the negativity he's. In in Brett but. EU. I really believe that this will use. Not on the forefront so that you ever were taken vice president very surprised US attorney brought charges this bleached in any federal campaign after the period denominations are there at that that this is the latest. Indictment against a member congress that's ever happened. In terms of closeness of the election. So. And I think that's an important situation. Because it is undoubtedly. Chemistry. Here is part of what counts had to say yesterday take a listen because my focus is to defeat the charges in court after today. I will not address any issues related to an eight and you know therapeutics. Outside of the courtroom this is now the biggest issue by far in this particular campaign in this election. Can you really go between now and November. Without answering any questions about his involvement in this. All right I don't think it's realistic. And all I mean it enters. You know obviously going to be in a pure running naked in paper congress accordion requisite mediator could interact with pop. And he's gonna get a lot of questions and. You know I think time will tell here. And he has to go out camping I need to talk to constituents. In the worked on them. All of that's what it's going to be you know in and out of date and I early next week. But arguably penal that you use it kind of held talks with congressmen support positions in that support supported president. So yes you you can still be an effective candidate on the trail I'll be news. This is about the next two years not between now be in the term. Nick can you believe really that mean in 24 hours New York 27 is now a battleground. I don't allegedly brokered call eight battleground trick at this point and Enders eat eat eat eat more Republicans. New York's eight I wouldn't be great food situation in the you know it's he would call mission in Asia in weeks to come. And then you know auction houses who's there for situation for him Monday because he certainly are approved all the language that he. Are headed in some. Press conference last night in. You know going forward we will see EU. How is campaign role well I'm looking forward to edit discussions people mean on the based company. Are you worried though that Republican voters. Will stay home in November. Why I don't because they think there's a lot of other things and this is not optional choice. I'm a little publicly dish owners in Western New York I do not. Were turned out to the governor's mansion I know that the support of Republican control of the New York State Senate there's a lot of other excuse. And I know they support president's agenda they don't want someone like me Murray. Cool if she'll that will either Kirk. Supporting you can almost hear someone you know to the extreme left like at Alexandria how do you Cortes the we don't know what it would it will union but what I do know. And it's eaten did not values your twit some great. Are there other Republicans who are willing that have contacted you were contacted your office to step up in this district. I think that's premature at this point I mean to have conversations about potential candidate because it won you know there's there's not a. A determination that congress and congress and columns. Controls it all seem to be the only one that couldn't then. Take the steps you can multiple ballot is so old that is not. Is something on the cable yet in what she put it. If he is reelected though and then found guilty and we talks with a lot of the financial experts over the course of the last 24 hours who said. This is kind of a cut and dried case as it's laid out right now of classic insider trading. There'll need to be somebody else on the ballots will it be as strong of a candidate as Collins has been. There are so you know when you when you're looking at you Republican seat the congress it's never ordered people. On the party. Whether it's from elected like that likes. There are looking to potentially run or something like edit. Meet a unique opportunity to serve your country. And CIA I don't think you would be at any shortage of people willing to step up and take it sort of leadership. That. I. Nick we're glad you could join us this morning thank you that's Erie county Republican Party chairman. Nick Langhorne you notice the political tones from both of them on Sherwood sound are they were calling for congressman Collins to resign something that. He said he's not going to do whereas it looks like the length worthy. He was still in shock just about everything that happened he said it was too early to discuss potential replacement candidates. And at the onus falls on congressman Collins himself. Now let's take a step back okay brief. Figure out what we're gonna do next we've looked at. The people on the ground discussing. What's happened in this race so far. The people in charge was set back a little bit further now we're gonna look at. Kind of all over view of the political ramifications would best. Once a Democrat had back to a new morning from Thursday's edition with the Susan Rosen Brian masse around ski. We had Jacob nine highs from the university at buffalo. In studio for about twenty minutes talking with and Iran take one more break come back with some more analysis from this congressman Collins indictment. The line in studio joining us now is Jacob nine highs professor over UB political science department Jacob thanks for joining us a while we just get started with. You heard the news yesterday you or immediate reaction. Thanks Jeremy on the program. Then observing politics for awhile so not a whole lot surprises me anymore. And I think go through that category this is been something there have been rumblings about for a little while now but. The timing was certainly that Jack. I mean kind of a seismic shift may be in the local political landscape oh absolutely there's a race next door that went from being solid Republican to. Maybe not perhaps even a tossup but certainly more interest and get. How much more interesting and does it get so I mean. You have somebody running who's now indicted that can't happen very often their can't be too much to look back down in history and say. Well this happens this happens usually. Other certainly examples of that none are coming off the top my head and we've had. Unfortunate lots of experience with indictments of members of congress. I don't know of any with this particular set of circumstances the top my head where. We're actually pretty close to mid term election and there really are no signs that Collins is going to back out of the race and so. Yes certainly changes the dynamics of it and I think that the big worry for Republicans in the states and and across the country is that. Not the you're going to see mass defections to the democratic challenger for unity masses. Numbers of that democratic or tuner Republican base staying home. Okay not choosing not to vote at all. I think that seemed like the more likely scenario here. Turnout among Republicans is likely going to be low across the country in the mid terms I just don't know there's going to be the excitement. That there democratic side is going to have going into these mid terms but. Yeah I think you see a number of solid Republicans saying I just can't do it a Campo eleven right now given mats do you think there's internal pressure on Collins to pull out of the race. Hi there might very well be I don't know what that outcome looks like in terms. If he even can't be replaced Jewish replaced by this late in the game who would have. Anything resembling the kind of name recognition that you need to perhaps to proceed. But for anyone to come into the race a newcomer. He would have to bow out first right absolutely are in studio guest this morning as Jacob nine highs solo at the university of buffalo professor of political science it. Jacob yesterday the news comes outs and sit. Nate McMurray his democratic opponent Chris counts that is in November says immediately. The donations started pouring and there was a huge disparity in the amount of money on hand between Chris Collins. And neat McMurray do you expecting influx of cash now from Democrats across the country oh absolutely. A teacher folksy is gonna start paying attention to a near 27. He's gonna get donations from around the country from Democrats are now perceive this race is being get double within reach and so. I guess that's that's gonna be a boon for his coffers to be sure if your Chris Collins you're gonna spend that as well. People outside of Western New York want influenced your elections and going to try to pitch it is something that is now being foisted upon the people Western New York. Not sure how well that framers going to work but that's the likely out yes. We firm Mick Murray it's got to be like getting struck by lightning yesterday right. Absolutely he went from likely going to be something of a sacrificial lamb in that district to be he could possibly pulled off here. How difficult. Did that look to pull it off and how difficult as it may be still look for him to. Pull it off if she says so all. Experts to rate these things they move the needle a little bit but it's still a lean Republican seats the demographics of it just are such that. You've got a lot of Republicans in one district. Question is how mobilized to the Democrats and district be two to Collins out. And how likely are Republicans to go to the polls I'm just thinking you were saying before that. Many voters Republican voters will choose to stay home so how does that affect. What happens in November than between these town. I use if you see differential turnout in any race you're going to worry about you know changing the outcome. Districts are are won and lost on who shows up the polls not necessarily who resides within that district and yeah I think that's a real worry not just for Chris Collins but for folks all across the country and did some media yesterday on the special election in Ohio twelve. He just didn't see the numbers and traditional trump territory that you would expect if they are excited energized about the candidates. Yeah I think a lot of people are waiting to see you whether or not that blue wave that we've heard so much about over the last year will actually happen or as the president tweeted this morning just Simply Red wave though which is it going to be or which do you see happening in November and it may be more importantly in that mr. Are with the caveat that have been wrong a lot since going sixteen. You know of their American politics is about the fundamentals and I think that's something we ignored in 2016 focusing on the the candidates in the race. The fundamentals showed strong Republican and that was a close victory for Republican candidates here. The fundamentals American politics definitely disadvantaged. The party that controls the White House in the mid term elections and that's. Held in all but two or three elections of last couple hundred years. And it that's really tough road to to go down if you were a Republican right now in the running for congress. Joined live in studio by UB professor of political science Jacob nine Keisel looking hats. The race now and I think you can probably call it a race now when maybe you couldn't before in New York 27 after the Collins indictment. What chance does need Mick Murray have we talked a little bit about the money that might be flowing in. For anemic Marie but so also we're talking a little bit off the air about the attention that now flows inferred Nate Mick Murray and people are. Now going to be paying attention to what he has to say. Absolutely. If you're challenger the biggest struggle you're going to have an any congressional race is going to be name recognition incumbents have a in spades they have all the tools. Of the institution at their disposal to get their name out there to advertise. Take credit for things take positions on a number of issues. And challengers traditionally don't have those avenues to to get their name out there and well nothing like this sets and make everybody pay attention to. The challenger in this case. It Democrats largely word ignoring McMurray he was really running on his own here this is it going to be quite the turnaround for some of them right. Right I would I would look today at the C money pouring in. Likely from the teacher seeing which is is going to three. Very strategic about where they put their money now they just put a new race on their map for for ones that are suitable. That was. You know going to Susan's point we heard those remarks for him. Governor Cuomo Lloyd now I think about a month ago now when he said that says naymick Marines may be not the strongest challenger he would rather have Kathy focal in there. In retrospect now that we have this news. Might that have Ben the case and the Democrats have been better off but turning to somebody like Campillo people who may have been better poised to jump on this. I mean hindsight being 20/20 absolutely. Few Newsom in this like this was coming down the pike. Yes put somebody in there who is immediate name recognition and who can command an audience. Courtesy of having held the seat before. Just becomes another dynamic to that race it's going to draw attention. I a not sure how much of a bomb that would then that certainly would have put the Democrats in a better position to win that eight. No we're asking and WB and dot com of our listeners if they think the indictment against talents will lead to his resignation and we are three months away from the November mid term. Yes you know it's almost split down a little 52% are saying yes 48% now. That being said if he did still resign how difficult would that be for the Republicans to get somebody else in there. Oh it's Debbie. That terrible difficulty I'm not an expert on. Ballot law in the State of New York I think be very difficult to even replace columns on the ballot at this point. Moreover who do you find in who's ready to go and has name recognition and money to it to make a real run at it. It may bring this up to it Collins was the first member of congress to support president trump. Do you find the timing of this indictment at all suspect because you know being three months before the election. I'm not really. I've always been one telling my students wherever you she conspiracy theory think I'm in something along the lines of incompetence. I think used is probably the time for for this to happen and I don't even really read much more into that. But the timing of that does play into narratives about it deep state about those who work against trump and his supporters and so. That's a likely were torched for Republicans in that district to say well. It's just you know the more evidence that fits of my own diocese regarding what's likely to it to happen here in in that forces there after my people. Both for this yesterday it seemed like Chris Collins didn't really have many plans on campaigning at all may be running a few TV spots but as far as. Being out there I campaigning the way you would expect a campaign be run. We definitely see that no questions being taken from the media that didn't change yesterday do you see that having to change now. That that's a great question how it's it's unclear what he could say or do that would get people over this I don't know that the press. Conference yesterday really gave us much in the way if the kind of reassurance as you want from a candidate. Who is signaling that he's going to be a fighter and I really don't know what he would say to voters at this point do you think that hurt more than help its not taking questions just they could they're meant anything. He said that was worse than just walking off that stage. Tom another great question I don't know what he can and cannot say and I am sure he's been coached by his lawyers. They're here the topics you need to stay away from and almost certainly some of those forbidden topics would come up any kind of open question. And so it's not clear what he could have done there. Except maybe signaled that he was going to that the fight hard and you know the what was really stunning to me was how we talked about you know the the laudable aspects of what he was doing his involvement with that company. And I don't know that that really played both voters. We're in studio this morning with Jacob nine highs all he's a professor of political science at the university of buffalo talking about the Chris Collins indictment. The current news conference last night that was ninety minutes delayed. Did he come across to you as a fighter. He really didn't and this that is not what I expected to see I expect him to be a bit more defiant and he said the words that he needed to say to signal that. He was going to challenge this of course in court to that he didn't seem like he was going anywhere. Just didn't have the fire that it would expected of somebody in that position. But this is college yesterday and one of the things that was talked about extensively on WB yen after we heard that news conference because my focus is to defeat the charges in court. After today. I will not address any issues related to an eight and you know therapeutics. Outside of the courtroom he says he will not address any issues if he does any inner view he's going to be asked about this. Can he really stay silent on this topic from now to Election Day. I I think he's going to have to again not a lawyer. But they would imagine the counsel's going to tell him to steer clear of any questions regarding his involvement there. Or give the the sort of nice version of it that he talked about at the press conference which is here's why I was involved and I are deeply believes in you know curing amassing and the like and I think that's the only avenue that he has and for that reason I don't see him doing much in the way of town hall meetings and used successfully avoided them to this point. I don't see them stopping now he says he might need it. Does he continued though you know stopping at fire departments and you know stopping and all the other schedule things that he was going to do because he'll continue to be confronted by people not just reporters but even you know people in his district I don't. He can't do that without looking out of touch I think he may have already taken a hit from some folks at least in the district you saw his. I guess work out front on the trump campaign and ending early adopters Trout. As not necessarily focusing on the district and the questions at hand the things that matter to western New Yorkers and that's very difficult position for members of congress to the end you don't wanna be seen as out of touch you to good home style Q. Keep people personally invested in your brand as a politician we've seen. A lot of side controversy surrounding politicians controversy surrounding. Politicians as it leads up to Election Day a lot of the times though it's comments it's something from the past it's no may be something that appears like it's wrongdoing. This is an actual indictment how does this differ from. You know some of these other examples we've seen previously. Yeah it it's a lot harder to dismiss this as pure politicking. You know if you read the indictment which I asked him briefly. Fairly detailed and if nothing else the timing of this looks suspect and it's put together by a judge you really if you look at all the US attorneys who the president has put into office this one more than any other was handpicked by trump. Right now I think that. Makes the signal even more credible that this is real and this isn't just playing politics. Congressman never made any reference to his son last night in those remarks did you finance and usual. Perhaps not unusual again I think he very carefully was coached by council the topics to avoid and given that that's what he's really being charged with a is not necessarily using information for personal gain but passing that along for others so that they might have gained. I think he had to steer clear that yesterday Collins Democrat opponent in November Nate McMurray. Was asked if the congressman should drop out of the race I'm primarily up to him. It's a decision I think we know what you would do curing if you're facing a type of serious charges facing. Let's everybody others understand. This is unprecedented. This is something that doesn't happen. We're it's a sad reality that this region this beautiful region that we all love so much our whole. Is represented by someone who brings a chain I don't know region hey. We need to find a way to bring back dignity. To this position and bring back the honored with the people of Western Europe deserve married Jacob nine Keisel is here from the university at buffalo. Do you at Nate McMurray. Is hoping that talent stays in or resign. Whether it's a great question how I guess it all depends on who would likely replace Collins at this juncture. That somebody with. Name recognition. Hometown favorite perhaps. In a district that is skewed that much in favor of Republican. Candidates. That's not an outcome you really want to meanwhile if Colin stays in the race you can give that kind of commentary. Throughout the campaign. As you point number one. For McMurray this might have been the first time people listen to him missing tiger campaign because they were interest in him what he had to say how do you think he did on that stage. I think he said what he had to do and he he looked pretty good doing it I think it's a shame that we didn't see more of helping her before this this happened. Yeah he I think he checked all the boxes and he's probably going to have some growing pains as he becomes a more visible candidate but it. First out of the gate you pretty good. Felt nick playing northeast state Erie county Republican Party chairman he will be joining us live at 8:30 this morning. Last night he said he hadn't have a conversation yet with Chris Collins to find that unusual. I don't know I mean I don't have an inside track has to what happens in the immediate aftermath of something like this I think it's something the probably should've happened. If you're Collins and you're going to rely on local party leaders to you. Get out your message which you very clearly need to have a little bit more of now you need to have people on the ground. Knocking on doors and need to have immediate presence and that used to be managed someone else. Do you think that Republican leaders at this point probably are looking at possible replacements. I think they have to be open to all options in the I think that that's something that they have to be looking and is exploring people who might be credible at this juncture to it to be slotted to that place. For the Democrats I'm sure by now they kind of had a plan of where they were gonna spend their money heading into November that's all turn on its head now right. Yes and no so I mean if you're looking at that district in your slicing and dicing it based just off the demographics if you're walking list you have. The the households that you want a target ten level any kind of campaign. I think you're you're looking at the same kind of map now you just have a slightly different feel. It's Susan rose from WB EN thank you for listening. Starting tomorrow he will no longer be able to hear any great shows on WB EN on tunis. Now the only place to listen to WBBM. Is radio dot com and go to radio dot com slash listen. Or download the radio dot com ever now to continue listening to this and many other great radio stations make the switch from tuna and two radio dot com today. I were back here on 716 week in review help us out rate review and subscribe to this podcast on iTunes. Telefrag Nevada and make sure that you download the radio dot com map as well it's the new home for WB and you can list was any time. Anywhere you hit push notifications from us we were one of the first in fact I believe we were the first news organization buffalo. To send out the story about congressman Chris Collins. You've got that information first on the radio dot com. Insider trading has become a key part of this news story this week because of their indictment of congressman Chris Collins. We've been seeing a lot of text that come through saying that OK congressman Collins never sold any of his stocks. This is where the insider trading question comes. We spoke with Jill Schlesinger you know or is Jill on money she talked about as a whole insider trading let's get a better understanding. Chills lesson juror from Jill on money Saturdays on WB and joining us live this morning or on planning a lesson in insider trading 101 jail. And it take us through this year prospective. Within your financial background adds is to what you heard yesterday about what Collins is accused of. You know it's in his wires hit we're like lighting up I called a couple of securities attorneys IL in New York. And what I said this is lack sick insider try and and here's why. All times it's murky as to you know who told why where and who acted on it we didn't let. In decay insider trading at all predicated on the fact that you can disseminate. Something that's not in the public domain. For a public company. Add an even if you did so just pretend that Holland didn't. Call his son instead dumped it got what he was at a cocktail party and he did not look you've brand and said. I'm on the board this company implemented what it pretty about the company I don't know. You know a and we get blocked this. B roundup I tried the it would FDA trial we get mail truck that also insider information that is not in the public domain and even Colin didn't do anything with that information. He would be indicted he's caught the kipper. They can't beat the person received that information. That person if they don't act on it maybe we'll never get will ever get a charge but in dictate that looks like Colin called his side. The son acted on the information on the mercurial information that was not in the public domain. Then the sun tells his fiancee and her father all of whom seem to make a trade right after. And this is just a classic case that tipper and the TP get indict it. So Collins doesn't have to do himself trade off stocks in order to be doing something against the law. L insider training is the dissemination of material information about public company. And it that is not already in the public domain. I guess what appoint get a similarity which is kind of interesting which is. You know if you look at that has luck. Craziness around Ilan mosque in and we talked about that if we come to find out. That he on mosque was just playing with us and he be just beacons of the net and and actually. Disseminating falsehoods about a publicly traded company that got insider trading but that is also a securities infringement and actually investigating him right now. Who what how similar is this. To Martha Stewart. With a little bit different it's fascinating it's clear whether Martha Stewart actually conducted insider trading because he did. Get it she did not go to jail for that she got went to jail for lying to expert to regulator. Bill it would be similar if they could actually figured out that she traded on that information or not but they do not have a nail bidding elder for the lie. This the insider trading. This does so classic because if they have they drop on record in calling his side. And then they go and pull the tape you compellent stock trading tape. And he'd get not a huge companies so it's not that he's. Making a trade in unit General Motors where he owed a hundred shares of stock it is thinly traded dot. And he kind of he blocked it right before information came out and there directory of this cult transpiring it's a hard thing to get back. Looking at its this case and Collins himself in not trading stock away. He said that it that was not the indictment in a news conference yesterday the US attorney said that's because he was already under investigation. And there were also hearing because that. He was serving on the board of directors are there are certain rules that govern. If somebody who's serving on the board can you know trade off a bunch of stock at wants. I mean you Sarah that there are certain rules but every publicly traded company. I'm an advocate of small one they're relatively speaking but every publicly trade he had rules about easily black out period. Where the board of directors and high level employees can can't trade the stock idolized billion people who work out Wall Street and they can only sell their stock. We've seen windows. And that window we usually around an event surely they know they're doing their quarterly earnings you can trade before that. They do it they week after the analysts call has taken place so this would be very it. Highly improper for anyone on the board of directors to buy or sell shares without disclosing it around any event that could occur. How was this innate company doing now. Oh my god you know the I think did two days that day after they made the announcement public that the trial failed to spot within 990%. So not very well yes. Hid debts even I can tell you. That's not how you want your stock to be performing down 90% doesn't sound good. Yeah ninety's not good at it on I'll also say that it ate it seemed I I have to go look into this but I could not believe that we see it as. You voters allow our lawmakers to serve on publicly traded company boards I think that that's actually the original sentence why should we allow that to accretion have to. Stepped down from anything not to mention you had everything attitude blind trust that he's crazy that we let this happen. But he's allowed grade that there's not a law against that. No there's no law against it and and you know we had a sixty minutes story about as an insider trading a little while back around that said there were some rule changes about. You know what what the congress people can do about laws and issues that are before them because it was the other way where Betty that a congressional committee. Guys impressing somebody about. Of violation whether it's Telecom Marseille beat and they have access to insider information that they cannot trade on so. This is something that. I think maybe we need to tighten up our regulations. It wondering if you have any insight on how long these cases typically go linger on foreign court jurist there's no real precedent set for that. I'm a bit it. Hitters are very clear and prosecutors don't bring I had I should say in this age I will say that there. Prosecutors do not bring cases they don't think they can win it that's actually shame because that that at least a lot of people out but. This this does as. You don't want charity said it looked like a slam dunk it could go on for a little while he wants the fight it that's fine but his name is going to be an idea that a lot of bad stuff gonna come up. In the process of the discovery so I think that it made beaded. You guys I have some new. Representing your region. Are right jell always great to talk with you. Better much better understanding now. Of insider trading that's just less enter from Jill on money Saturday's four until sexier and WB this is our last. Interview that we're featuring on 716 week in review for this week. The stock affect you how. Probably had never heard of it before yesterday or even today it was something that was created in 2012 by former congressman Louise Slaughter who you may remember. The Rochester based congresswoman passed away. The stock act was introduced in the House of Representatives by her and this is been something that's been tweeting about these last couple days by. Returning second mark polling cars lieutenant governor Kathy a local and so many other people. I spoke with the GOP Erie county legislator Kevin Harvick he's also political science professor at kinesis college. I want to get an understanding of what the stock act it's. Does it apply to what happened with congressman Chris Collins Hardwicke spoke and they just a couple of hours before I started this podcast you know being Erie county legislator Kevin Harvick joins us also a professor kinesis college. This indictment against congressman Collins has really put an emphasis on the stock act. People might not know exactly what that is what can you tell us about. Well the stock act was passed in an attempt to stir up. Congress people from trading and information they got this congress people now the interesting thing is that there is a lot of attention on this. But what we're talking about now in this in this current indictment. Really it's just run of the mill insider trading it has nothing to do with his position as a congressman. Other than the fact that he apparently got the bad phone caller daddy mail and send out the phone call. To his son that while he is at the White House other than that he was just like any member of the boards of director of any company in America. Don't previously. When the stock was going up he was accused of in effect trading and insider information here there's a congressman you know. And congressman where we're at to do that they would they would get find out. That a government contract is going here there they would investors have their families their friends invested their company. They would find out about the legislation which was gonna be tailored that would help this industry this industry and they would you know before the public was aware of it they would they would act out. I know that was what the stock act was really India. This sort of thing that Collins is accused of now. You know has been around for years it's just people. On boards. People inside organizations. Getting getting a tip knowing that the stock is gonna Reiser the stock is gonna fall and acting on it before the. Public knows. The name that's been coming up a lot lately has been in the late congresswoman Louise Slaughter she had an impact on me. Stock act and what did she do we'll see if she authored. The stopgap and a lot of people at the time thought it was directed. Writing Collins and it was the same company. And it involved it involved that's not going up actually in him. Supposedly bragging to people that he was creating millionaires because he tipped them off. That the stock was going up and they invested in and and they benefit now bat. That was due to again allegedly. Information he got or influence he had as a congressman. That's what this act is aimed yet again the current indictment is just like a sick run of the mill insider trading head reeling. Nothing apparently to do with his position as a congressman. So did slaughter did she create the original signer or did she just for close a few loopholes that were already. Not now now you're you're you're getting into that the weeds and I'm. I'm not aware. So the stock act. I mean there's even apply to account situation in your honor I don't know I mean I'm not a lawyer don't play one on TV but I don't think it does I think I think. You know people. Arc inflating the they these two circumstances. Surrounding this stock one on the way up. Yes perhaps he had some information. Or perhaps he had some influencing used it as a member of congress. That day he learned that the stock was gonna rise and then he bought it before rosary bought more stock and then he might have otherwise. When this time when the stock is going down no that's just. You know he he didn't have to be a congressman to get there he was a member of the board director I don't think it has anything to do with him having a position in the United States House of Representatives. That's how much irony do you do you notice that given that slaughter was the person per tonne on the stock act so much. And like you said it was really focused I guess supposedly on congress yeah talents and now coincidentally here we are on Wednesday he gets indicted on inside. Tree yeah I I I think I think you would the that you would be remiss if you didn't point out the the coincidence there. But again I'm not sure that the this stock it really. Was aimed at what's happened now was aimed at what happened before. They're they're so much talk about obviously will be talking a lot of this week adamant program. Feel free to plug my tong has well tended noon on Sunday morning hardline. You know will be will be talking a lot of what's happened because everybody's talking. If you've been listening to this podcast you've been keeping track you might have noticed that I've given you nine in depth cuts ranging from analysis soup. What actually happened from the indictment to congressman Collins his response on Wednesday evening. These nine cuts are not even a fraction well actually allies by about half of what we have over at WB EN dot com but my point is here. That we have so much more content more analysis. Give upon her understanding of it by heading over to WB EN dot com and you can get all of our news stories by downloading the radio dot com that I almost feel bad because I dedicated this entire podcast to the indictment of congressman Chris Collins why because there were other news stories that happened this week as well we had more crime in the city of buffalo we weren't able to get to. The Buffalo Bills had their pre season home opener because talked about traffic we are have some audio people who are in mid season form when it comes to tail gating. But don't worry if you just because she didn't hear on this podcast doesn't mean that we don't have. Head over to WB EN dot com and you can read our news stories you can listen to that audio yourself and really. This news story the congressman Chris Collins indictment has been the biggest political story of 2018 when I was. Looking at some of the news on saint Twitter. Used you hear about trending worldwide while at least in the United States I was told that they Colin stuff. Happened to beat number one in the rankings this is a major news story that's been getting a lot of coverage. So will continue to follow this I have I'm not sure if it's been mentioned yet in this podcast I save it to the very end because now you're wondering what's next. What's next with congressman Chris Collins. Is he going to hold any public events I was on his page I didn't see anything that was listen I imagine he's going to be in the dark between now. And then November election. But one thing that we do know mark account with October 11. Congressman Collins and report back from the federal courtroom and the next chance to. This story but until then that's it for this week's. Make sure you follow. Tell your friends know about this time. Great reviews subscribe on iTunes and you can always pitches podcasts first by downloading them redo dot com at. You can listen to. This has been a long episode. We'll see. Exclusive seven.
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