Martin Shkreli, the pharmaceutical CEO best known for raising the price of a drug geared toward cancer and AIDS patients by more than 5,000 percent, was arrested earlier today and charged with securities fraud.
According to Bloomberg News, the charges stem from Shkreli’s tenure as CEO of the biotech firm Retrophin Inc. As I mentioned back in September (hooray for me!!!), Shkreli was ousted as CEO of the firm and accused of using the company’s funds as a private piggy bank in order to repay angry investors from his failed hedge fund, MSMB Capital Management.
While in charge of the hedge fund, Shkreli allegedly squandered millions of dollars while at the same time assuring his investors they were making money. At one point, Shkreli is said to have told his clients he was up 35.8 percent when in fact he was down 18 percent.
Shkreli, who became a public pariah due to his previously mentioned 5,000 percent price hike of the drug Daraprim, recently caused more outrage by paying $2 million for the only copy of the Wu-Tang Clan’s new album, Once Upon a Time in Shaolin. Earlier reports that authorities had seized the album during his arrest turned out to be false. However, as Bloomberg News points out, if Shkreli is found guilty, the album may be confiscated and sold in order to make restitution to his alleged victims.
In closing, let’s all take a moment to watch this clip of Shkreli defending his decision to raise the price of Daraprim from $13.50 to $700, and then have a satisfying laugh about the fact he might soon be behind bars for a very long time (even if his reason for being there is unrelated):
(Source: Bloomberg News)