Martin Shkreli, the infamous pharmaceutical entrepreneur who became universally reviled for jacking up the price of an HIV and cancer drug from $13.50 to $750 per pill, was arrested by federal agents this morning on charges of security fraud.
The accusations have nothing to do with pill pricing — manipulating the cost may be extraordinarily cruel, but it’s not illegal — he is suspected of illegally taking stock from Retrophin, a company he founded in 2011, and using it to pay off expenses from unrelated business deals.
"Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit," said U.S. Attorney Robert Capers at a press conference. Investigators likened his actions to a “Ponzi scheme.”
Retrophin previously replaced Shkreli as CEO “because of serious concerns about his conduct,” the company said in a statement.
Authorities described a scheme of investment losses and lies Shkreli allegedly told to investors. Starting with about $3 million in 2009, Shkreli lost money almost immediately, and covered it up. By the end of the year he had just $331 of that $3 million left.
He managed to bring in millions more in investments, but lost that two. He wove tall tales for investors — allegedly telling them his returns were as high as 35.8 percent when he actually was down 18 percent! Shkreli also allegedly used some $120,000 in client money to buy clothing, food and medical supplies for himself.
Shkreli became infamous after his company, Turing Pharmaceuticals AG, bought the drug Daraprim — which treats toxoplasmosis, a parasitic condition that can be deadly for unborn babies and people with compromised immune systems, such as HIV or cancer and raised the price.
His naked greed became an issue among presidential candidates, with Republican front-runner Donald Trump labeling him a “spoiled brat.” Bernie Sanders, a Democratic candidate, rejected a $2,700 contribution from him. A campaign spokesman called Shkreli the “poster boy for drug company greed.”
However, asked what he would change if he got a chance to do it all again, Shkreli said, “I probably would have raised the price higher. My investors expect me to maximize profits.”
Further souring public opinion against him, Shkreli recently spent millions to buy the only copy of a Wu-Tang Clan album and told disappointed fans he has no plans to listen to it!
