Martin Shkreli: CEO who jacked up price of life-saving drugs by 5,000% is arrested
Hedge funder raised the price from $13.50 to $750 per pill
A drug company CEO who jacked up the price of life-saving HIV drugs has been arrested on securities fraud charges relating to a firm he founded.
Martin Shkreli was nicknamed "the most hated man on the internet" after he bought the rights to Daraprim.
He then hiked up the price by 5,000 per cent from $13.50 per pill to $750.
However, Bloomberg reports that the charges have nothing to do with pharmaceutical costs.
It says prosecutors charged Shkreli with illegally taking stock from Retrophin Inc., a biotechnology firm he started in 2011, and using it 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.
According to the report 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.