The charges stem from an ethics investigation that was launched previous year following accusations that Collins shared non-public information about an Australian biotech company.
Collins was a member of Innate's board of directors and held almost 17 percent of the stock.
Collins is estimated to be the 13th wealthiest member of Congress, with a projected net worth of $44 million.
Since his inauguration, Collins has continued to defend Trump.
Lawyers for Collins released a statement expressing confidence he would be "completely vindicated and exonerated".
Remains of boy found at New Mexico compound
Taos county deputies found 11 children, ranging in age from 1 to 15 in unhealthy conditions at the makeshift compound in Amalia. What authorities found was what Hogrefe called "the saddest living conditions and poverty " he has seen in 30 years on the job.
A federal grand jury accused the Buffalo-area lawmaker of passing nonpublic information about a biotech company to his son, who traded on the information and passed it along to others.
Collins was the biggest investor in the company, which is developing treatments for multiple sclerosis, and he reportedly was pitching it as a good investment to friends and House colleagues.
Rep. Chris CollinsChristopher (Chris) Carl CollinsTrump tweet may doom House GOP effort on immigration House GOP discharge petition supporter says he likely won't sign a second one Live coverage: High drama as hardline immigration bill fails, compromise vote delayed MORE (R-N.Y.) has been arrested and charged with insider trading by the Justice Department. They sold their stocks in the company before the public announcement, which caused the company's stock prices to drop by 92 percent.
According to the documents, the congressman did not make trades himself, because he was under investigation by the Office of Congressional Ethics and his shares were traded on the Australian stock exchange, which had halted trading in Innate stock.
According to the inducement, Collins was shocked when he was informed about the drug's failed trial.
They are said to have avoided at least $768,000 in potential losses by selling before the negative trial results were made public.