White Collar Crime – Price Gouging CEO in Court Charged With Securities Fraud

Posted by Tina

In case you wondered what happened to the young CEO of the drug company, Turing Pharmaceuticals, who raised the price the lifesaving cancer and AIDS drug, Daraprim, from $13.50 to $750 a pill, this story is for you. This guy turns out to be a real sleaze. Not only did he gouge very ill patients and our insurance providers, the guy was running a hedge fund ponzi scheme at the same time. He now faces 20 years behind bars (if convicted). His name is Martin Shkreli. I won’t link to the article it’s filled with celebrity anger and a lot of really bad language.

I hope they throw the book at him.

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5 Responses to White Collar Crime – Price Gouging CEO in Court Charged With Securities Fraud

  1. Dewey says:

    Tina this is the new norm. He is not a loan wolf. He just was stupid and greedy, made himself stick out. This is capitalism at work and the regulations that allowed him to be arrested will be under attack soon under some name like protect the citizens health ……..bill.

  2. Tina says:

    Gee Dewey I thought you’d at least be pleased that a white collar corporate typeis probably going to jail.

    “This is capitalism at work…”

    This is NOT capitalism at work. This is a greedy man doing business fraudulently. it has nothing to do with creating and selling products or investing in companies.

    “…the regulations that allowed him to be arrested…”

    That would be the law.

    The law didn’t “allow” him to be arrested. The law nailed him for working outside of the regulations and defrauding people for personal gain.

    As I have often said regulations need to be simple and straight forward so everyone understands exactly what they mean and there are no loop holes.

  3. Harold says:

    Resent update on Shkreli;

    Martin Shkreli, the embattled health care businessman, has been let go by KaloBios Pharmaceuticals — one of the companies he had headed.

    On Monday, the company said Shkreli was “terminated” as CEO and had resigned from the board.

    The 32-year-old former hedge fund manager pleaded not guilty Thursday in Brooklyn federal court and was released on $5 million bail.

    He was charged with securities fraud and conspiracy. Prosecutors say that from 2009 to 2014, Shkreli lost some of his hedge fund investors’ money through bad trades. To pay back his disgruntled clients, he allegedly looted $11 million from another pharmaceutical company, Retrophin, where he was CEO.

    “As alleged in the indictment, Shkreli essentially ran his companies like a Ponzi scheme, where he used each subsequent company to pay off the defrauded investors in the prior company,” U.S. Attorney Robert Capers said on Thursday.

    Now if we could only apply this resolve to those elected that fail us on a regular basis!

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