SHAMED AT LAST: AIDS-drug gouger Martin Shkreli is marched to court by FBI after securities fraud arrest for running a Ponzi scheme to pay debts – and freed on $5 MILLION bond
- Martin Shkreli, 32, has been arrested on charges of securities fraud and running a Ponzi scheme to pay off debts from an old company
- It is also alleged he illegally used stock from the biotechnology firm he owned, Retrophin Inc., to pay off debts related to MSMB
- Retrophin and its investors suffered a loss in excess of $11million because of Shkreli’s scheme according to United States Attorney Robert Capers
- He earned the moniker of ‘most hated man’ in September after raising the cost of an AIDS and cancer drug from $13.50 per tablet to $750 overnight
- MSMB Capital Management was founded by Shkreli in 2009 and shuttered in 2012, the same year Retrophin was founded and Shkreli became CEO
- He was released on a $5million bond after bring arraigned in federal court on Friday
Martin Shkreli was released on a $5million bond after being arraigned on charges of securities fraud in federal court in Brooklyn Thursday afternoon.
Shkreli, the son of immigrants, was also forced to forfeit his passport.
The price-hiking pharmaceutical entrepreneur was picked up by the FBI in the early hours of Thursday following an investigation into a former hedge fund and drug company he previously headed.
It is alleged he illegally used stock from the biotechnology firm Retrophin Inc. to pay off debts related to his struggling hedge fund and to pay back angry investors.
He is being charged with seven counts of fraud for running what United States Attorney Robert L. Capers of the Eastern District of New York is calling a Ponzi scheme.
Shkreli, 32, pleaded not guilty to these allegations.
He faces a maximum sentence of 20 years in prison if convicted on all charges.
Free: Martin Shkreli was released on a $5million bond Thursday afternoon
Art: A courtroom sketch shows defendants Shkreli (C) and Greebel (R) a former partner at law firm Katten Muchin Rosenman (R) during their arraignment