Martin Shkreli Could Face 20 Years In Jail

Martin Shkreli

Martin Shkreli ran his companies “like a Ponzi scheme” with a “trifecta of lies, deceit, and greed.”
That is how federal law enforcement officials described the allegations unveiled Thursday and the pharmaceutical CEO was arrested at his home. .

Shkreli has been under fire since his purchased a popular drug used in AIDS patients and jacked up its price by 5,000%.

Accusations do not extend to Turing Pharmaceuticals, the company that raised the price of Daraprim.

His federal case focuses on his time as CEO of Retrophin, another biotech company that ousted him last year. The indictment was brought by prosecutors in Brooklyn.

Shkreli “ensnared investors through a web of lies and deceit” and ran Retrophin like a Ponzi scheme as he used the company’s assets to pay off debts from the old entity,” said U.S. Attorney Robert Capers.

Shkreli and his attorney at Retrophin are now facing securities fraud and conspiracy charges alleging they channeled millions in cash and Retrophin stock through fake consulting agreements.

“Mr. Shkreli is confident that he will be cleared of all charges,” attorney Craig Stevens said in a release.

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Prosecutors claim that the money was funneled through the organization so he could satisfy claims from investors in hedge funds he had previously stolen money from.

“The charges announced today describe a securities fraud trifecta of lies, deceit, and greed,” said FBI official Diego Rodriguez.

The FBI began investigating one of the most hated men in America while he was still CEO of Retrophin.

Retrophin is already suing Shkreli in federal court. The company is seeking $65 million while accusing its former CEO of misusing company cash and stock.

“A new chapter for Retrophin began the day the company replaced Martin Shkreli more than a year ago — and that decision has been vindicated by today’s indictment,” said the company’s statement.

U.S. Magistrate Judge Robert Levy approved his release on a $5 million bond. The judge set $1 million bail for the co-defendant in the case, Evan Greebel, 42.

Shkreli posted bail and left court shortly after the $5 million bond was assigned.