The enfant terrible of the pharmaceutical world has run headlong into what might be karma. LBN’s Ryan Gaumont reports that Martin Shrekli, CEO of Turing Pharmaceuticals, was arrested last week for securities fraud. [See LBN’s previous coverage of Shkreli.] Shkreli gained world attention by boosting the price of the drug Daraprim from $13.50 per pill to $750.00. Daraprim is used to treat the disease toxoplasmosis.
The securities fraud charges arise from actions by Shkreli in 2011 when he was a hedge fund manager for MSMB Capital, a company he started, and his involvement with a biopharmaceutical company called Retrophin. U.S. Attorney Robert L. Capers told reporters in New York. “His plots were matched only by efforts to conceal the fraud, which led him to operate his companies . . . as a Ponzi scheme.”
Shrkeli also made news by being the only buyer of the Wu-Tang Clan’s album “Once Upon a Time in Shaolin” for $2 milllion. It’s possible the album will be seized and sold by the government. Shkreli says that his arrest was really caused by the Daraprim uproar and not securities fraud. He was released on $2 million bail.
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