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Shkreli Arrested
On December 16th KaloBios Pharmaceuticals Inc., fired
Martin Shkreli as chief executive, the same day he was
arrested on charges of a securities fraud.
Shkreli was charged with securities fraud and conspiracy.
Prosecutors say from 2009 to 2014, Shkreli lost some of his
hedge fund investors' money through bad trades, then
looted a pharmaceutical company where he was CEO for
$11 million to pay back his disgruntled clients.
His replacement at Turing as interim CEO, Mr. Tilles had
been chairman of the company who vowed to make the
drug affordable:
"We remain committed to ensuring that all patients
have ready and affordable access to Daraprim."
Shkreli had been arrested for engaging in what U.S.
prosecutors said was a Ponzi-like scheme at his former
hedge fund MSMB Capital Management and Retrophin Inc.
He was released soon after on a $5 million bond. If
convicted Shkreli faces up to 20 years in prison.
The US authorities claimed that Shkreli essentially ran his
company like a Ponzi scheme where he used each
subsequent company to pay off defrauded investors from
the prior company.
