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Thread: Shkreli, CEO Reviled for Drug Price Gouging, Arrested on Securities Fraud Charges

  1. #1

    Default Shkreli, CEO Reviled for Drug Price Gouging, Arrested on Securities Fraud Charges

    Shkreli, CEO Reviled for Drug Price Gouging, Arrested on Securities Fraud Charges

    32-year-old suspected of plundering Retrophin to pay debts
    By Christie Smythe and Keri Geiger | December 17, 2015

    Photographer: Francesco Nazardo

    Martin Shkreli, the boyish drug company entrepreneur, who rocketed to infamy by jacking up the price of a life-saving pill from $13.50 to $750, was arrested by federal agents at his Manhattan home early Thursday morning on securities fraud related to a firm he founded.

    Shkreli, 32, ignited a firestorm over drug prices in September and became a symbol of defiant greed. The federal case against him has nothing to do with pharmaceutical costs, however. Prosecutors in Brooklyn charged him with illegally taking stock from Retrophin Inc., a biotechnology firm he started in 2011, and using it to pay off debts from unrelated business dealings. He was later ousted from the company, where he’d been chief executive officer, and sued by its board.

    In the case that closely tracks that suit, federal prosecutors accused Shkreli of engaging in a complicated shell game after his defunct hedge fund, MSMB Capital Management, lost millions. He is alleged to have made secret payoffs and set up sham consulting arrangements. A New York lawyer, Evan Greebel, was also arrested early Thursday. He's accused of conspiring with Shkreli in part of the scheme.

    Retrophin replaced Shkreli as CEO “because of serious concerns about his conduct,” the company said in a statement. The company, which hasn’t been accused of any wrongdoing, has “fully cooperated with the government investigations into Mr. Shkreli.”

    Shkreli’s lawyer didn’t immediately respond to requests for comment. Spokeswomen for Kaye Scholer LLP, where Greebel works, and Brooklyn U.S. Attorney Robert Capers declined to comment. Capers will discuss the case at a press conference Thursday in Brooklyn.

    Shkreli’s extraordinary history—and current hold on the public imagination—makes the case more noteworthy than most involving securities fraud. The son of immigrants from Albania and Croatia who worked as janitors and raised him deep in working-class Brooklyn, Shkreli both epitomizes the American dream and sullies it. As a youth, he showed exceptional promise and independence and, after dropping out of an elite Manhattan high school, began his conquest of Wall Street before he was 20.

    His name entered public consciousness after he raised the price more than 55-fold for Daraprim. It is the preferred treatment for a parasitic condition known as toxoplasmosis, which can be deadly for unborn babies and patients with compromised immune systems including those with HIV or cancer. His company, Turing Pharmaceuticals AG, bought the drug, moved it to a closed distribution system and instantly drove the price into the stratosphere.

    The moves drew shocked rebukes from Congress, public-interest groups, doctors and presidential candidates, and cast an unwelcome spotlight on the rising prices of older drugs. Donald Trump called Shkreli a “spoiled brat,” and the BBC dubbed him the “most hated man in America.” Bernie Sanders, a Democratic presidential candidate, rejected a $2,700 campaign donation from him, directing it to an HIV clinic. A spokesman said in October that the campaign would not keep money “from this poster boy for drug company greed.”

    Shkreli initially responded to the criticism by saying he would lower the Daraprim price and then changed his mind again. When Hillary Clinton tried one more time last month to get him to cut the cost, he dismissed her with the tweet “lol.” At a Forbes summit in New York this month, wearing a hooded sweatshirt, he said if he could have done it over, “I probably would have raised the price higher,” adding, “my investors expect me to maximize profits.”

    “The $65 million Retrophin wants from me would not dent me. I feel great. I’m licking my chops over the suits I’m going to file against them”

    In fact, it is not only his drug pricing that has turned him into an object of public derision. He recently spent millions on the only copy of a Wu-Tang Clan album that music fans would love to hear and then told Bloomberg Businessweek that he had no immediate plans to listen to it. He spars often on Twitter and message boards, parading his business strategies, musical tastes and politics; he live-streams from his office for long stretches.

    full story:
    http://www.bloomberg.com/features/20...urities-fraud/

  2. #2

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    He won't spend a day in jail. Maybe a few months probation.

    He'll write an autobiography and make millions selling the movie rights.

    Wolf of Wall Street 2. LOL.

  3. #3

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    Sounds like a bit of a scumbag to me.

  4. #4

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    just a bit?!

  5. #5

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    The moral of the story is if you eff with rich people's money, you get arrested. But it is OK to eff with the medications poor people need to stay alive. He is beyond despicable.

  6. #6
    Crabby airline hostess - stache's Avatar
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    All of this juxtaposed with a baby face.

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