Video After The Jump
Turing Pharmaceuticals CEO, Martin Shkreli, was arrested by the FBI on Thursday, December 17.
The 32-year old Brooklyn, New York native, who just this week said he would bail Bobby Shmurda out of jail, and had previously paid $2 million for the Wu Tang Clan's secret album, "Once Upon a Time In Shaolin," has been charged with securities fraud, according to Bloomberg.
EXCLUSIVE: Pharma CEO Martin Shkreli arrested on charges of securities fraud https://t.co/Kwz4jw4bPA pic.twitter.com/hzn9C1IknR
— Bloomberg Business (@business) December 17, 2015A boyish drug company entrepreneur, who rocketed to infamy by hiking up the price of a life-saving pill from $13.50 to $750, was arrested by federal agents at his Manhattan home early Thursday morning on securities fraud related to a firm he founded.
Martin Shkreli, 32, ignited a firestorm over drug prices in September and became a symbol of defiant greed. The federal case against him has nothing to do with pharmaceutical costs, however. Prosecutors in Brooklyn charged him with illegally taking stock from Retrophin Inc., a biotechnology firm he started in 2011, and using it to pay off debts from unrelated business dealings. He was later ousted from the company, where he’d been chief executive officer, and sued by its board.
In the case that closely tracks that suit, federal prosecutors accused Shkreli of engaging in a complicated shell game after his defunct hedge fund, MSMB Capital Management, lost millions. He is alleged to have made secret payoffs and set up sham consulting arrangements. A New York lawyer, Evan Greebel, was also arrested early Thursday. He's accused of conspiring with Shkreli in part of the scheme.
**UPDATE**
Martin Shkreli has been released from custody on $5 million bond. He's been charged with securities fraud conspiracy, securities fraud and wire fraud conspiracy, U.S. attorney Robert Capers announced.
U.S. attorney Robert Capers
The second defendant, lawyer Evan Greebel, was charged with wire fraud conspiracy.
Both men pleaded not guilty in federal court in Brooklyn, New York.
MOMENTS AGO: Martin Shkreli leaving FBI after being processed by officials in New York following his arrest. https://t.co/qGNZOusfgV
— CNBC Now (@CNBCnow) December 17, 2015If convicted they could face up to 20 years maximum in prison, according to the Associated Press.
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