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08/09/2018 07:59 AM EDT


By Nolan D. McCaskill (nmccaskill@politico.com or @NolanDMcCaskill)

WHAT INDICTMENT? COLLINS STILL RUNNING FOR REELECTION -- Rep. Chris Collins (R-N.Y.) insists he will remain on the ballot and run for reelection this fall despite being indicted and charged -- along with two others Wednesday -- with securities fraud, wire fraud and making false statements to the FBI. Collins, the first sitting member of Congress to endorse Donald Trump's presidential campaign, pleaded not guilty in court and called the charges "meritless" in a brief media appearance. He told reporters he would "mount a vigorous defense in court to clear my name" and said he anticipates being "fully vindicated and exonerated."

"The third-term congressman ... had been under scrutiny from the Office of Congressional Ethics for his connection to the company, Innate Immunotherapeutics," Kyle, Jimmy Vielkind and Laura Nahmias report. "He was the company's largest shareholder and served on its board. Prosecutors say that in 2017, Collins passed inside information to his son, Cameron, who passed it to another alleged conspirator, Stephen Zarsky, father of Cameron Collins' fiancée. The three ... and other family and friends avoided about $768,000 in losses as a result of the inside information, prosecutors allege." According to the indictment, the alleged conspiracy began in June 2017 -- while Collins was
attending the White House's congressional picnic.

The SEC also announced insider-trading charges against the three men. House Speaker Paul Ryan (R-Wis.) said Collins, a member of the House Energy and Commerce Committee, won't serve on the panel "until this matter is settled. "Insider trading is a clear violation of the public trust," Ryan said. Much more: http://go.politicoemail.com/?qs=6924b2bfad4f41e7e1e871817272988082dee7bd53c810be79239c072d7b5abe43e03b94dffe7768d741f698b6e3d553

Related: "Chris Collins, a timeline -- including video of that phone call at the White House picnic," by CBS News: http://go.politicoemail.com/?qs=6924b2bfad4f41e75048c740f985b24ea0ef8891da5fd7180f3caba5c79d4ad2d39ed6adb300754abfb4f017330f13a5

NY-27 UP FOR GRABS? -- Democrats had little chance of unseating Collins, whose Buffalo-area seat is one of the most conservative districts in New York. But Wednesday's indictment could change things. The DCCC now says the seat is "firmly in play," and the nonpartisan Cook Political Report has shifted it from "solid" to "likely" Republican. "The timing of the indictment, less than three months before the election, would seem to pose a disadvantage to Mr. Collins," The New York Times' Shane Goldmacher reports. "The question is whether the Democrats can capitalize on Mr. Collins' legal problems. The Democratic nominee is Nate McMurray, a town supervisor of Grand Island, who has about $80,000
in campaign funds."

Collins, meanwhile, had $1.3 million in his campaign account as of his latest FEC filing. Collins could, however, dip into those funds for his legal troubles. "National Democrats hoped to use the indictment as evidence that the Republican Party fostered a 'culture of corruption,' as the House minority leader, Nancy Pelosi, said on Wednesday, the same message she first rode into the majority in 2006," Goldmacher continues. "Yet there is some precedent for a New York Republican congressman winning re-election under indictment: Michael Grimm did it just six years ago in a swing Staten Island district, though he resigned soon after, pleaded guilty and served months in prison for tax evasion."
More: http://go.politicoemail.com/?qs=6924b2bfad4f41e7055f4d31794c4b542344f396dc47c7e32c8ca53b4aaebfc843246a53da4d021136de2820bfdaf7d9

Related read: "Chris Collins, Donald Trump and Republicans' corruption perception problem," from The Washington Post's Amber Phillips: http://go.politicoemail.com/?qs=6924b2bfad4f41e7c6e20de346c92296653e190f244a8b893420efe8634e5630e80c2fb360e7ed8c7704e5eeeb26cb6b

NUNES AUDIO LEAKED -- House Intelligence Committee Chairman Devin Nunes (R-Calif.) said during a recent Republican fundraiser in Spokane, Washington, that conservatives' effort to impeach Deputy Attorney General Rod Rosenstein had stalled because it would delay Supreme Court nominee Brett Kavanaugh's confirmation, according to audio released Wednesday. He told a questioner who asked about impeachment that "it's a bit complicated" because "we only have so many months left." He added that if the House voted to impeach, the Senate would have to take it up next. "And you have to decide what you want right now because the Senate only has so much time," Nunes said. "Do you want them to drop
everything and not confirm the Supreme Court justice, the new Supreme Court justice?"

"So it's not a matter that any of us like Rosenstein. It's a matter of, it's a matter of timing," he said. "The Rachel Maddow Show" obtained the audio from a member of the progressive group "Fuse Washington" who paid the $250 entry fee to attend the fundraiser for House Republican Conference Chairwoman Cathy McMorris Rodgers (R-Wash.). Nunes was also recorded saying that if Attorney General Jeff Sessions won't "unrecuse" himself and special counsel Robert Mueller "won't clear the president," then "we're the only ones, which is really the danger." He said Republicans have to keep their majority, or "all of this goes away." More: http://go.politicoemail.com/?qs=6924b2bfad4f41e7facb598f9b9df0937c00839e0aa2c8b5762cc0314ef8dd5f596304449456c824e99b678191583cd7

GOOD MORNING! Thanks for reading Huddle, the play-by-play guide to all things Capitol Hill, on this Thursday, August 9.

WEDNESDAY'S MOST CLICKED: The Texas Tribune's report on how Rep. Beto O'Rourke's (D-Texas) Senate campaign could shape Texas politics for years to come was the winner.

IS TRUMP A DRAG? -- Tuesday's primary results reignited the intraparty debate over what role President Donald Trump should play in midterm races. Even after the president rallied for Ohio special election candidate Troy Balderson last weekend, Balderson narrowly leads Democrat Danny O'Connor in a still-too-close-to-call race for a district Republicans have held since 1983. White House aides are currently "mapping out plans for the fall that would offer a variety of options to Republican candidates, including visits by the president's daughter Ivanka Trump to blue states and presidential tweets to bolster red-state allies," The Washington Post's Robert Costa and Josh Dawsey report.

"Many Republican strategists viewed the results as a dark omen three months ahead of Election Day, saying they illustrate the limits of Trump's ability to boost candidates, particularly in suburban areas where the president's popularity has suffered," they continue. "Even in Republican primaries, securing Trump's endorsement was not a guarantee of electoral success." Trump, however, saw it differently. The president boasted via Twitter that he's a kingmaker and said, "If I find the time ... which I must, we will have a giant Red Wave!" Much more: http://go.politicoemail.com/?qs=6924b2bfad4f41e78996695ce1bfa374529f6a015880872fd4548069dd203aa83dd72c2b9e181769d07f539c34632002

Related: "Republicans Gird for House Battle as Ohio and Kansas Races Remain Close," via The New York Times' Alexander Burns and Jonathan Martin: http://go.politicoemail.com/?qs=6924b2bfad4f41e7b96a2024fbb19b332dda76337a2c7fc5fcc8fa3b575b4e4b3fc997e96ff64405b4656fbc0eb392c9

W.V. REPUBLICANS WANTS TRUMP -- The president won't be a drag in West Virginia's Senate race, in which state Attorney General Patrick Morrisey is struggling to close the gap against Sen. Joe Manchin (D-W.Va.). Trump won the state in 2016 by more than 40 points and remains overwhelmingly popular there. Yet Manchin continues to hold a comfortable lead in public and private polling. He also has a massive $6.2 million war chest, while Morrisey has less than $900,000 in the bank. Morrisey hasn't responded to blistering Democratic ads against him by going on the airwaves himself. But at least five outside groups are attacking Manchin on the air this month.

"Trump is the cornerstone of Morrisey's turnaround bid: Republicans in the state are counting on the president's support to put the Republican back within striking distance," James Arkin reports. "If Trump holds a couple of rallies in the state to bash Manchin, Republicans say, the dynamics of the race could change very quickly." In an interview, Morrisey declined to name a single issue he disagrees with the president on and said Trump is a "difference-maker" in the race. "The president is very committed to this race, and he loves the state passionately," he said. "That's going to matter in November." More: http://go.politicoemail.com/?qs=6924b2bfad4f41e714aee8ad059703c03b18eb3e6dcd5cfa1c4aca2ab3ad8e748a73692530c3916e9dd6f9f90b3eca26

Related read: "Joe Manchin Backs Funding Trump's Border Wall in Fall Spending Bill," by Breitbart's Sean Moran: http://go.politicoemail.com/?qs=6924b2bfad4f41e7113c752300dce5b2a9219a0d81dc12997aed8fecdb14e63c9e112146d8b1eb65c5d831dd06b863ee

RAND DELIVERS TRUMP LETTER IN RUSSIA -- Sen. Rand Paul (R-Ky.) said he delivered a letter on behalf of President Donald Trump to Russian President Vladimir Putin's administration that "emphasized the importance of further engagement." White House spokesman Hogan Gidley said Paul requested that Trump provide him "a letter of introduction," in which "the president mentioned topics of interest that Senator Paul wanted to discuss with President Putin." Paul said the letter highlighted cooperation with Russia on "countering terrorism, enhancing legislative dialogue and resuming cultural exchanges." The letter made no mention of Russia's interference in the 2016 election. More:
http://go.politicoemail.com/?qs=6924b2bfad4f41e75f1d3a063b33ee48d012825ade31eaabbefa5de36072515cc4a139d26f8fab30f4fd946af140bfef

Related: "Trump connects with Rand 'at gut level,'" from Eliana Johnson: http://go.politicoemail.com/?qs=6924b2bfad4f41e7197dde1456713bfaa853ea341dad5b40447291b1e16d6fc1888894b31faa18f0c34433054f3e49a7

NELSON CLAIMS RUSSIA TARGETING FLORIDA -- Sen. Bill Nelson (D-Fla.) said Russian operatives have "penetrated" some of the Florida's voter registration systems, though the state says it's received "zero information" backing his charge. "They have already penetrated certain counties in the state and they now have free rein to move about," Nelson told the Tampa Bay Times. "His account was partly corroborated by two county officials, who said they heard a similar warning at a private meeting with [Florida Sen. Marco] Rubio in May," Alex Leary, Steve Bousquet and Kirby Wilson report. "All 67 counties have spent considerable time addressing election security and are in the process of spending
federal money to fortify systems, following a 2016 attempt by Russians to hack Florida's elections apparatus." More: http://go.politicoemail.com/?qs=6924b2bfad4f41e7e38933e2887c233fb573a003508eb60295041e26eabb3a64e62bd699d45d3f5fe5e5ff3f254ba87d

Related: "Senate Leadership Fund Hits Bill Nelson for Memory Lapse: Senator Is 'No Longer Dealing From a Full Deck,'" per The Washington Free Beacon's David Rutz: http://go.politicoemail.com/?qs=6924b2bfad4f41e704e521e2728d304c1d07e714d24ce6e3b5be7692aefe8577548cbb980e5ae3fdebabe2cdbc8f0253

SENATE INTEL WANTS ASSANGE TO TESTIFY -- WikiLeaks said the Senate Intelligence Committee has asked its founder, Julian Assange, to testify on Russian interference in the 2016 election. The group said its legal team is "considering the offer but testimony must conform to a high ethical standard." The letter asks Assange to make himself "available" for a closed interview with the panel "at a mutually agreeable time and location." "Interviewing Assange is a complicated prospect, as the WikiLeaks founder has been holed up in the Ecuadorian Embassy in London since 2012," CNN's Jeremy Herb and Daniella Diaz note. "CNN reported in July that his situation has become untenable and he may soon
leave." More: http://go.politicoemail.com/?qs=6924b2bfad4f41e7c792a7bbb4aada4681ca82e1caa1ff4424655547ac17e9c788e2fc50453b95373db421c84b0ad38c

TRANSITIONS -- Julia Lawless is leaving the Senate Finance Committee staff, where she served as communications director. Katie Niederee will take over as the majority communications director, and Brigid Ueland will serve as press assistant.

TODAY IN CONGRESS -- The House and Senate are out.

AROUND THE HILL -- Reps. Cheri Bustos (D-Ill.) and John Sarbanes (D-Md.) will hold a conference call briefing to discuss Democrats' "A Better Deal For Our Democracy" agenda to crack down on the culture of corruption and cronyism spotlighted by the arrest of Rep. Chris Collins (R-N.Y.) beginning at 9:30 a.m. The call-in number is 888-390-0971, and the password is CORRUPTION.

WEDNESDAY'S TRIVIA WINNER -- Eli Schechner was first to correctly guess that there are eight presidents we know were left handed: James Garfield, Herbert Hoover, Harry Truman, Gerald Ford, Ronald Reagan, George H.W. Bush, Bill Clinton and Barack Obama.

TODAY'S TRIVIA -- From Adam Schutzman: Under which president and in what year was the phrase "under God" added to the Pledge of Allegiance? The first person to correctly guess gets a mention in the next edition of Huddle. Send your best guess my way: nmccaskill@politico.com.

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