Martin Shkreli, accused of drug price gouging, charged with securities fraud
File photo of Martin Shkreli in New York on Aug. 10, 2011. Photo by Paul Taggart/Bloomberg via Getty Images
Martin Shkreli, chief executive and founder of Turing Pharmaceuticals, was arrested at his Manhattan home Thursday morning and charged with securities fraud.
The federal charges stem from his time as hedge fund manager of MSMB Capital Management and founder of biopharmaceutical company Retrophin. The company acquired old drugs used for rare diseases and substantially raised their prices.
In one case, Retrophin raised the price of Thiola, which is used to treat a disease that causes kidney stones, from $1.50 a pill to $30.
He did the same thing as head of Turing, acquiring a drug and raising the price from $13.50 a pill to $750.
The federal charges are believed to be related to a civil lawsuit filed against Shkreli by Retrophin in August. Retrophin’s board removed Shkreli as chief executive in September 2014, saying he used the company’s funds to pay off investors who lost money at his hedge fund.
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