World's "Most Hated CEO" Martin Shkreli Arrested For Fraud
- Publish Date
- Friday, 18 December 2015, 9:02AM
Martin Shkreli, a lightning rod for growing outrage over soaring prescription drug prices in the US, has been arrested by the FBI after a federal investigation involving his former hedge fund and a pharmaceutical company he previously headed.
The securities fraud probe of Shkreli, who is now chief executive officer of Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc, stems from his time as manager of hedge fund MSMB Capital Management and CEO of biopharmaceutical company Retrophin Inc, a person familiar with the matter said.
Reuters witnessed the Thursday arrest at the Murray Hill Tower Apartments in midtown Manhattan.
Law enforcement including Federal Bureau of Investigation agents could be seen escorting Shkreli, who was wearing a hoodie, into a car.
FBI spokeswoman Kelly Langmesser confirmed Shkreli's arrest.
Shares of KaloBios fell about 50 per cent to $US11.75 in premarket trading.
Lawyers for Retrophin and Shkreli did not immediately respond to a request for comment. Turing and KaloBios declined to comment.
Turing sparked controversy earlier this year after news reports that it had raised the price of Daraprim, a 62-year-old treatment for a dangerous parasitic infection, to $US750 a tablet from $US13.50 after acquiring it.
Shkreli, 32, was expected to be charged on Thursday for illegally using Retrophin assets to pay off debts after MSMB lost millions of dollars, the source said.
The probe, by federal prosecutors in Brooklyn, dates back to at least January when Retrophin said it received a subpoena from prosecutors seeking information about its relationship with Shkreli.
That subpoena also sought information about individuals or entities that had invested in funds previously managed by Shkreli, Retrophin said in a regulatory filing.
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