Martin Shkreli Arrested by FBI Over Hedge Fund Investigation
The pharmaceutical entrepreneur Martin Shkreli has been arrested by the FBI as part of a federal investigation related to his former hedge fund and a drug company he used to run.
The previously disclosed investigation of Shkreli, 32, who is now chief executive of Turing Pharmaceuticals, stemmed from his time as manager of the hedge fund MSMB Capital Management and chief executive of biopharmaceutical company Retrophin.
A continuing but separate controversy has turned Shkreli into a lightning rod for growing outrage over the soaring prices of prescription drugs.
Shkreli gained notoriety in September after it was revealed that his Turing Pharmaceuticals had raised the price of Daraprim, a drug used to treat parasitic infections from $13.50 a pill to $750 a pill overnight.
Turing Pharmaceuticals had acquired Daraprim, a drug first developed in the 1940s, a month earlier. The news led to a congressional hearing after politicians including Hillary Clinton and Donald Trump attacked the price rise.
Shkreli started Retrophin in 2011 and was later ousted as chief executive officer and sued by its board. In lawsuits filed in New York Shkreli has been accused of insider trading and making “materially false and misleading statements” that “artificially inflated” the company’s stock price.
He has previously denied any wrongdoing at Retrophin, in a message on a pharma news bulletin board.