New York GOP Rep. Chris Collins is resigning ahead of a hearing related to insider trading charges.
Collins on Monday submitted a resignation letter to Speaker Nancy Pelosi. It will be effective when it is read on the House floor during a pro forma session on Tuesday, her office confirmed.
Collins, who has previously entered a not guilty plea in his federal criminal fraud case, has a change of plea hearing scheduled for Tuesday afternoon, raising the possibility that the New York Republican could agree to a deal offered by federal prosecutors. Collins is to appear before Judge Vernon Broderick of the U.S. District Court for the Southern District of New York at 3 p.m.
The scheduling of the hearing was first reported by The Buffalo News. Collins faces eight counts of federal criminal charges involving conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud and false statements. His trial is scheduled for Feb. 3.
Collins, along with his son, Cameron, and Stephen Zarsky, the father of Cameron’s fiancee at the time, are alleged by federal prosecutors to have engaged in an insider trading scheme involving an Australian biotechnology company — Innate Immunotherapeutics.
Collins, who was on the company’s board, allegedly provided nonpublic information to his son about confidential drug test results, paving the way for Cameron and others to trade on that privileged information before the public could.
Half of Collins’ full-time staff left the office since he was indicted in August 2018 on fraud charges. Seven of 14 full-time staffers are no longer working in the office, according to payroll records from May 2019, the most recent filing available in the Legislative Resource Center. Those who departed include his deputy chief of staff, Michael Kracker, communications director Sarah Minkel, and health policy adviser, Charlotte Pineda.
New York Gov. Andrew M. Cuomo would set the date of a special election if it were to be called before next November’s presidential contest when House representatives are already on the ballot. County party officials select their respective party’s nominees in those races.
Collins, one of President Donald Trump’s earliest backers in the House GOP conference, hails from a deep red district in Western New York. Trump won the 27th District by 24 points in 2016, but Collins won reelection by less than 1 point in 2018 against Grand Island Supervisor Nate McMurray.
McMurray was running against Collins again and he said in a statement on Monday that “the real victims of Collins’ crimes are the people of his district that he repeatedly lied to about his guilt.”
Collins’ exit could boost Republicans’ chances of holding onto the seat, given its partisan lean. One GOP strategist was confident the seat would remain in Republican hands regardless of the eventual nominee. Several GOP candidates are likely interested in running for Collins’ seat, be it for a special election or for a full term in 2020.
A trio of Republicans had already jumped in the race to challenge Collins, who thus far had been non-committal about whether he would run for reelection.
GOP State Sen. Chris Jacobs, who had the most cash on hand at the end of the second fundraising quarter, was already in the race. He had nearly $748,000 in his campaign account, and loaned his campaign $325,000. Collins had claimed Jacobs was a “Never Trumper” for dodging questions in 2016 about his support for Trump, but Politifact found that claim was false. GOP state Sen. Rob Ortt, and Beth Parlato — an Afghanistan War veteran and attorney — were also in the race.
Collins’ exit could bring more Republican candidates into the race. Two sources said another potential candidate to watch is Erie County Comptroller and former local television news reporter Stefan Mychajliw, who has been making the rounds at GOP events. State Assemblyman Steve Hawley is another potential candidate.
“There are candidates who I think will be in before we get off the phone. Things are moving fast,” said GOP consultant Michael Caputo, who advised Trump’s 2016 presidential campaign. Caputo said Monday that he was launching an effort to draft Army veteran David Bellavia to run for Congress, although Caputo would not rule out running himself if Bellavia chose not to run.
Bellavia, who was recently awarded the Medal of Honor for his service in the Iraq War, is often mentioned as a potential candidate in the district, although it is not clear if he is interested in running.
Bellavia, who has also been a local radio host, won a majority of the counties when he ran against Collins in the GOP primary in 2012. Bellavia discussed the 27th District race with Trump when he was awarded the Medal of Honor in June, according to a source with knowledge of their discussion. Bellavia did not immediately respond to a request for comment.
McMurray may not be alone on the Democratic side in an open seat race. Erie County Democratic Party chairman Jeremy Zellner said in a phone interview that he was already hearing from Democrats who could be interested in running, but he noted that party is “laser-focused” on next month’s election for county executive.
“This district has always been a challenge for Democrats ... We’re looking for the strongest person who represents that community,” Zellner said.
