Pharmacy executive Martin Shkreli arrested

Turing Pharmaceutical CEO Martin Shkreli was arrested Monday and charged with securities fraud stemming from the handling of assets at his previous company.
By David Sims | Jun 11, 2016
Martin Shkreli, the CEO and founder of Turing Pharmaceuticals made famous after accusation of drug price-gauging, has been arrested in New York City. His arrest, however, is not related to activity in his current position, but stems from charges of securities fraud at his previous company Retrophin.

Initial attention and criticism was drawn to Shkreli, 32, in August when his company acquired the popular AIDS medication Daraprim, and then raised the price from $13.50 to $750 per pill overnight. This caused the media and public to lash back at Shkreli, who is known for living a lavish, party-boy lifestyle. Most recently, he was in the news for purchasing the only copy in existence of the new Wu-Tang Clan album, "Once Upon a Time in Shaolin", for reportedly $2 million dollars.

According to the New York Times, Shkreli was arrested by the FBI on Thursday at his Manhattan apartment. He is being charged in a federal indictment with securities fraud during his time managing MSMB Capitol Management, while simultaneously running bio-pharmaceutical company Retrophin. He is accused of lying to investors about MSMB's assets, and misappropriating money from Retrophin to pay MSMB's debts. It was only after being forced out of Retrophin that Shkreli started Turing Pharmaceutical.

This is not the only time Shkreli has run two companies simultaneously. In November he gained control of KaloBios Pharmaceuticals, while still running Turing. KaloBios has already raised red flags by trying to acquire a drug for Chagas disease, common in Latin America, and raise the price for treatment from $50-$100 to $60,000-$100,000.

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