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Shkreli charged in "Ponzi-like" scheme

Thursday, December 17, 2015 - 01:44

Martin Shkreli, a lightning rod for growing outrage over soaring prescription drug prices, was arrested by the FBI on Thursday after a federal investigation involving his former hedge fund and a pharmaceutical company he previously headed. Bobbi Rebell reports.

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Prosecutors announcing securities fraud charges against Martin Shkreli and his lawyer. The drug company CEO who recently caused outrage when he raised prices on an HIV drug by more than 5,000 percent. The charges here relate to using assets from another company he used to head, Retrophin, to pay off debts from hedge funds he ran. His lawyer Evan Greebel faces charges as well. U.S. attorney for the Eastern District of New York, Robert Capers: SOUNDBITE: ROBERT CAPERS, U.S. ATTORNEY FOR EASTERN DISTRICT OF NEW YORK (ENGLISH) SAYING: "Today this office and the FBI are announcing the arrest this morning of Martin Shkreli and Evan Greebel, and the unsealing of a seven-count indictment charging Shkreli with securities fraud conspiracy, securities fraud, and wire fraud conspiracy, and Greebel with wire fraud conspiracy." Many on social media said the 32-year old Shkreli was getting what he deserved. On Twitter, the top hashtag and keyword related to his arrest was #karma. Columbia Law Professor John Coffee: SOUNDBITE: JOHN COFFEE, PROFESSOR, COLUMBIA LAW SCHOOL (ENGLISH) SAYING: "I'm sure there are lots of people who wanted him indicted for something, but this is an unrelated charge and this involves conduct between 2009 and 2015, well before he moved up the prices on his new company Turing Pharmaceutical. So, these are unrelated companies, but it does look like a man who was extremely reckless and wasn't much constrained by the rules of the law." Shkreli is out on $5 million bail. Reuters David Ingram: SOUNDBITE: DAVID INGRAM, REUTERS REPORTER (ENGLISH) SAYING: "It's interesting that the government used the phrase Ponzi-like scheme. And it brings up memories of Madoff, which of course was a much bigger alleged fraud. That was a real fraud. This is an alleged fraud still. But it brings back memories of Madoff and other Ponzi schemes that we have seen in the past." The maximum sentence for the top count is twenty years.

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Shkreli charged in "Ponzi-like" scheme

Thursday, December 17, 2015 - 01:44