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Turing Pharmaceuticals CEO Martin Shkreli was arrested on securities fraud charges by the FBI on Thursday, Bloomberg reported. The charges are related to incidents that occurred while Shkreli was CEO of Retrophin Inc.
The 32-year-old entrepreneur made headlines in September when he raised the price of life-saving drug Daraprim from $13.50 to $750. After days public outrage, Shkreli announced he would lower the price in order to make the drug "more affordable."
According to Bloomberg, Shkreli was arrested early Thursday at his home in Manhattan and charged with illegally taking stock from Retrophin Inc. and using it to pay off debts relating to his now-defunct hedge fund MSMB Captial Management.
Shkreli started Retrophin Inc. in 2011 but was ousted from the company by its board of directors in September 2014. He was later sued by the board for misuse of company funds.
Shkreli is accused of misusing Retrophin funds to allegedly pay off millions in debts to investors of MSMB Capital Management, Bloomberg reported.
Also arrested was lawyer Evan Greenbel, who was accused of conspiring with the pharmaceutical entrepreneur.
Retrophin filed a federal lawsuit against Shkreli in August for $65 million for the misuse of company funds. Shkreli has denied the allegations made against him by Retrophin. In a post made on InvestorsHub in February, Shkreli wrote he was "confident that anyone who looked into the transactions would find them perfectly legal, reasonable and quite intelligent (the results of the company speak for themselves.)"
Shkreli is the son of Albanian and Croatian immigrants and grew up in working-class Sheepshead Bay, Brooklyn and got his start interning for "Mad Money" host Jim Cramer. Earlier this month is was reported that he spent millions to buy the only copy of Wu-Tang Clan's next album, Once Upon a Time in Shaolin.
from BuzzFeed - USNews http://ift.tt/1TRWEcu
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