FBI Arrests Turing CEO Martin Shkreli

Source: Reuters

Dec 17, 2015

Martin Shkreli, enemy number one in the battle over inflated prescription drug prices, was arrested by the FBI on Thursday on securities fraud charges.

Shkreli, currently CEO of Turing Pharmaceuticals and KaloBios Pharmaceuticals, is facing a federal indictment related to his former position managing hedge fund MSMB Capital Management and heading biopharmaceutical company, Retrophin.

The indictment also names Retrophin's outside counsel, Evan Greebel.

According to the indictment, Shkreli sent inaccurate updates to MSMB investors in 2011, touting profits that didn't exist, as well as soliciting $5 million from investors for another fund, MSMB Healthcare Management, while concealing his performance managing MSMB Capital and providing investors an inflated valuation of Retrophin.

Shkreli and Greebel then misappropriated $11 million in Retrophin assets to pay back the MSMB investors.

Read the Reuters coverage