Martin Shkreli, CEO Who Price-Gouged Life-Saving Medicine, Arrested for Fraud
The 32-year-old former hedge fund manager was taken into custody at his Manhattan home on charges of securities fraud. The charges are related to a Retrophin Inc., a company he managed before Turing Pharmaceuticals, the company he now runs that caused controversy after jacking up the price of Daraprim, a drug used to treat AIDS and cancer patients, from $13.50 per tablet to $750.
— Bloomberg Business (@business) December 17, 2015
This case against him, however, has little to do with pharmaceutical price-gauging, the New York Times reported. He’s being charged for illegally taking stock from Retrophin Inc., the biotechnology firm he was fired from, and using it to pay off debts from other business deals. After being fired, Shkreli was sued by Retrophin’s board.
Evan L. Greebel, a corporate lawyer who worked with Shkreli, was also arrested. Federal prosecutors in Brooklyn are expected to hold a news conference to discuss the charges later in the day on Thursday.