The indictment was brought by prosecutors in Brooklyn. The controversial executive and his lawyer were arrested Thursday in NY on charges of security fraud committed during his time at several former companies.
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Shkreli is alleged of misappropriating money from two hedge funds he established and made material misrepresentations to investors among other widespread misconduct.
“The charges announced today describe a securities fraud trifecta of lies, deceit and greed”.
Hours later, the FBI bureau in NY felt a need to address this the issue of the whereabouts of the album, created by the hip hop group from Staten Island. Earlier this month, Shkreli said if he could go back and do it again, he’d raise the price even higher.
Incidentally, Buzzfeed is reporting that Shkreli founded a hedge fund MSMB Capital, and recruited investors by boasting the fund had $35 million in assets.
On Thursday night, he said via a statement that he was confident he would be cleared of all charges and denied the charges regarding his hedge fund entities. The company said it had cooperated with investigators.
Martin Shkreli has resigned as CEO of Turing Pharmaceuticals, according to a company statement on Friday.
Earlier this year, the pharmaceutical exec also threw down $2 million to buy the only copy of the Wu-Tang Clan’s recent album, Once Upon a Time in Shaolin, angering fans everywhere.
Shkreli is facing up to 20 years in prison for his actions at MSMB and Retrophin. They were both released on bail but ordered to surrender their passports and restrict their travel.
The government charges do not include activities at privately held Turing, which has been at the center of a national drug pricing debate.
But Shkreli recently took over another small publicly-traded drug company, KaloBios, which develops cancer drugs.
Shkreli’s takeover of the firm sent shares soaring 400% on the first day after the news, and shares had since more than doubled in value.
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Turing Pharmaceuticals bought the United States rights to Daraprim in August from Impax Laboratories. And his spree of tweets following the news only increased the media backlash.
