'Pharma Bro' Arrested on Securities Fraud Charges
Martin Shkreli, the pharmaceutical executive who became a public sensation earlier this year for significantly raising drug prices, has been arrested by the FBI on charges of securities and wire fraud based on prior work at a hedge fund.
The Securities and Exchange Commission (SEC) also brought similar charges against Shkreli.
The charges against Shkreli relate to his time working as a hedge fund manager at MSMB Capital Management and as chief executive of pharmaceutical Retrophin Inc.
According to the indictment unsealed in federal court in Brooklyn, Shkreli allegedly mislead potential investors in MSMB about his performance as a hedge fund manager and the fund’s assets, in order to secure investments. Once investments were secured, Shkreli is accused of deceiving clients about the fund’s performance, telling them they had earned large profits while in reality the fund had lost money.
When investors sought to pull their money out of the funds, Shkreli is accused of paying them back with cash and stock from Retrophin, the indictment alleged.
FBI agents also arrested Evan Greebel, a Kaye Scholer LLP corporate lawyer, on charges of wire fraud and allegations of conspiring with Shkreli on the scheme.
Posted in The Takedown