The 30-page complaint highlights that the congressman both received the information about the failed drug trial from the company's CEO and then repeatedly dialed his son, Cameron Collins, while the elder Collins was attending the annual congressional picnic at the White House on June 22, 2017. The indictment says the trades allowed Cameron Collins and others to avoid more than $768,000 in losses.
All along, Collins denied any wrongdoing.
The U.S. Attorney's Office in Manhattan will speak about the indictment during a news conference scheduled for noon.
Chris Collins' lawyers responded swiftly, insisting he will be "completely vindicated".More news: Johnny Depp's Notorious BIG Movie Pulled A Month From Release
The trial results were made public a week later, with Innate stock losing 92 per cent of its value in off-exchange trading.
Collins, one of President Donald Trump's early supporters in Congress, came under fire early previous year for investing in the Sydney-based Innate Immunotherapeutics while sitting on a House committee that oversees healthcare policy.
"Many Republican leaders are struggling to come to terms with Donald Trump as their party's nominee: Some are declining to immediately endorse him, while others say outright that they won't support him and are searching for a third-party alternative to back this fall", RealClearPolitics wrote in the piece.
Collins' attorneys said they plan to "mount a vigorous defense to clear his good name".
Collins, a vocal Trump ally, worked closely with the administration during the presidential transition, serving as the point of contact between lawmakers and the Trump transition team.