The 32-year old pharmaceutical entrepreneur who became hated worldwide after buying a life-saving drug and jacking up the price from $13.50 per pill to $750 has been arrested by federal authorities at his home in New York on securities fraud charges. According to Bloomberg, Martin Shkreli is accused of taking stock from Retrophin, Inc., a biotech firm he started in 2011 and using it to pay off unrelated debts. Shkreli is accused of creating a complicated shell game after a hedge fund he created, MSMB Capital, lost millions in bad investments. He allegedly set up sham consulting agreements to cover up secret payoffs he made to investors. Shkreli's New York attorney, Evan Greebel, was also arrested and is accused of conspiring with Shkreli to commit the fraud.
Shkreli is the son of Jewish immigrants from Albania and Croatia. He cut his teeth in the world of Wall Street finance working for hedge fund manager, Jim Cramer. He held jobs at UBS and Intrepid Capital Management before launching his own hedge fund in 2006. His arrest follows a well-publicized lawsuit Retophin brought against him after he was ousted as its CEO in which he was accused of breaching his duty of loyalty to the company and violating securities rules. The company sought $65 million in damages from him, which he said "would not dent me." "I'm licking my chops over the suits I'm going to file against them," Shkreli said." It was his acquisition of the life-saving drug, Daraprim, that would bring him unwanted notoriety. News that he was raising the price of the life-saving drug 5,500 percent brought him worldwide condemnation.
|Shkreli being arrested in New York (AP Photo)|