In schaudenfraude news, the guy who bought the patent for lifesaving drugs and then massively increased their price has been arrested for fraud.
Martin Shkreli grabbed everyone’s attention when he jacked up the price on lifesaving HIV-related drugs from $13.50 to $750 in September this year.
That’s an increase of more than 5500 per cent.
The 32-year-old has now been arrested for securities and wire fraud, not related to his most recent drug price hikes.
And people are loving it.
The charges stem from Shkreli’s time managing hedge fund MSMB Capital Management and biopharmaceutical company Retrophin.
Shkreli “essentially ran his companies like a Ponzi scheme, where he used each subsequent company to pay off defrauded investors in the prior company,” US Attorney Robert Capers said at a press conference announcing the charges.
When Shkreli needed to pay off investors, prosecutors allege he stole funds from Retrophin to do so.
He’s been charged with seven counts of securities fraud conspiracy, securities fraud and wire fraud conspiracy involving “three inter-related schemes. Two involving two different hedge funds that he ran, that he founded and he managed and the third involving Retrophin,” Capers said.
“He took in approximately $3 million from eight investors, based on lies that he told them,” he said.
But when he lost the money through “a series of bad trades”, prosecutors allege that he didn’t tell the investors and instead started a second hedge fund in an attempt to cover up the losses.
Shkreli’s drug-pricing activities caused widespread outrage, and his defiant posturing over the controversy has probably made him the most hated man on the internet in 2015.
Reporting his arrest, The New York Times described Skhreli as a ” flamboyant pharmaceutical entrepreneur”. As the news of Shkreli’s arrest spread, it delighted many people.
The hashtag #Karma soon popped up, linked to his name on social media.
Shkreli posted the $5 million bail required by the court on Thursday evening.
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