Reviled for Drug Price Gouging, CEO Shkreli Nailed for Fraud

An American drug cartel entrepreneur named Martin Shkreli was handcuffed and trucked off to jail by the FBI last week. He was arrested in an early morning raid on his upscale Murray Hill Tower home in downtown New York, on a warrant that charged he had created a Ponzi scheme involving a pharmaceutical company and a hedge fund.

martin shkreli

Question: Should street punk wannabes run drug companies?

Shkreli, age 32, is the same drug corporate CEO who drastically raised the price of a life-saving prescription drug last year, causing public outrage. At the time of his arrest he was the CEO of Turing Pharmaceuticals as well as KaloBios Pharmaceuticals. He is charged in a U.S. government indictment relating to his management of hedge fund MSMB Capital Management and a drug company, Retrophin.

Pill TossShkreli became the poster boy for the soaring prescription drug prices in the U.S. He was personally responsible for raising a cancer treatment medication from $13.00 a pill to $750.00.

The arrest is a stark punctuation of a change of fortune for Shkreli, who over the summer became a public ogre for his controversial remarks to the news and taunts on social media. Ironically, his arrest has nothing to do with his outrageous drug pricing.

According to U.S. Attorney Robert Capers, Shkreli ran his companies like a Ponzi scheme, using newer corporation money to pay off investors of previous corporations he had victimized by fraud.

Shkreli faces charges of Securities Fraud, Wire Fraud Conspiracy and other conspiracies to commit fraud. He was released on $5,000,000 bail. He could get 20 years in prison.

Here’s more:

http://money.cnn.com/2015/12/21/news/martin-shkreli-arrest-drug-price-hike/

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