Kara Sears
Martin Shkreli, the so-called 'most hated man in America', was arrested in 2015 and charged with securities fraud. Shkreli was the CEO of Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals) and was found guilty of engaging in illegal and monopolistic behaviour. He was banned for life from the pharmaceutical industry and ordered to pay $64.6 million in disgorgement.
| Characteristics | Values |
|---|---|
| Fraud | Charged with securities fraud |
| Illegal and monopolistic behaviour | Banned for life from the pharmaceutical industry |
| Breach of duty of loyalty | Sued for $65 million by Retrophin |
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What You'll Learn
- Shkreli was charged with securities fraud
- He was also charged with cooking the books in an unrelated business venture
- He was banned for life from the pharmaceutical industry
- He was sued for $65 million by Retrophin for breaching his duty of loyalty to the company
- He was ordered to pay $64.6 million in disgorgement
Shkreli was charged with securities fraud
In December 2015, Shkreli was arrested at his New York apartment and charged with securities fraud. He was also banned for life from the pharmaceutical industry and ordered to pay $64.6 million in disgorgement. Shkreli was described by New York Attorney General Letitia James as having "tried to profit off of vulnerable people by jacking up lifesaving medicine to ludicrous prices and preventing cheaper generic versions from entering the market".
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He was also charged with cooking the books in an unrelated business venture
Martin Shkreli was charged with securities fraud and cooking the books in an unrelated business venture. Shkreli was the CEO of Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals) and was found guilty of engaging in illegal and monopolistic behaviour. Shkreli had bought a little-used but life-saving drug and increased the price by 55-fold, or 4,000 per cent. This was not the reason for his arrest, but he was charged with securities fraud and cooking the books in an unrelated business venture. Shkreli was banned for life from the pharmaceutical industry and ordered to pay $64.6 million in disgorgement.
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He was banned for life from the pharmaceutical industry
Martin Shkreli was banned for life from the pharmaceutical industry by the United States Supreme Court, which refused to hear an appeal from the convicted criminal. Shkreli was the CEO of Vyera Pharmaceuticals (formerly known as Turing Pharmaceuticals) and was found to have engaged in illegal and monopolistic behaviour. He was also ordered to pay $64.6 million in disgorgement.
Shkreli's actions included acquiring a drug that was the only FDA-approved treatment for toxoplasmosis, a parasitic disease that can be life-threatening for those with compromised immune systems, and increasing its price dramatically overnight. The price per pill of Daraprim increased from $17.50 to $750, a 4,000% increase. Shkreli was also accused of securities fraud and cooking the books in an unrelated business venture.
Shkreli's former company, Retrophin, also filed a $65 million lawsuit against him, claiming that he had breached his duty of loyalty to the company by misusing company funds.
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He was sued for $65 million by Retrophin for breaching his duty of loyalty to the company
Martin Shkreli was sued for $65 million by Retrophin, the biopharmaceutical company he founded, for breaching his duty of loyalty to the company. Shkreli was accused of using company funds for his own personal gain, including to pay off investors in a failed hedge fund.
Shkreli's actions led to a long-running dispute with Retrophin, which culminated in his departure from the company and the subsequent lawsuit. The lawsuit claimed that Shkreli had breached his fiduciary duty to the company and its shareholders by putting his own interests ahead of theirs.
Shkreli's conduct also attracted the attention of federal authorities, who charged him with securities fraud in an unrelated business venture. Shkreli was found guilty of this charge and sentenced to seven years in prison. He was also banned for life from the pharmaceutical industry and ordered to pay $64.6 million in disgorgement.
Shkreli's actions as CEO of Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals) also led to legal action being taken against him by New York Attorney General Letitia James. Shkreli dramatically increased the price of Daraprim, an FDA-approved drug for the treatment of toxoplasmosis, a parasitic disease that can be life-threatening for those with compromised immune systems. This price increase was deemed to be illegal and monopolistic behaviour, and Shkreli was held accountable under New York's tough anti-fraud laws.
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He was ordered to pay $64.6 million in disgorgement
Martin Shkreli was ordered to pay $64.6 million in disgorgement after the United States Supreme Court decided not to hear an appeal from the convicted criminal. Shkreli was banned for life from the pharmaceutical industry and ordered to pay the money in January 2022. This was the result of a District Court for the Southern District of New York decision, which was previously upheld by the Court of Appeals for the Second Circuit. The ruling was the result of actions taken by Attorney General James, who utilised New York Executive Law Section 63 (12) and the state's antitrust laws, as well as the Federal Trade Commission (FTC), and six other states. Shkreli was found to have engaged in illegal and monopolistic behaviour as the CEO of Vyera Pharmaceuticals (previously known as Turing Pharmaceuticals).
Shkreli had increased the price of Daraprim, the only FDA-approved drug for the treatment of toxoplasmosis, a parasitic disease that poses serious and often life-threatening consequences for those with compromised immune systems, including babies born to women infected with the disease and individuals with HIV. Shkreli increased the price of the drug overnight from $17.50 per pill to $750 per pill, an over 4,000 per cent increase.
Shkreli was also arrested on charges of securities fraud in an unrelated business venture. He was described as "essentially cash broke" by his lawyer despite claiming to be worth tens of millions of dollars.
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Frequently asked questions
Martin Shkreli was found guilty of securities fraud. He was also accused of ripping off a drug company he founded, Retrophin, for millions of dollars.
Shkreli was banned for life from the pharmaceutical industry and ordered to pay $64.6 million in disgorgement.
Shkreli's lawyer claimed that he was essentially cash broke, despite his ownership stake in Turing.
Retrophin.
Daraprim.
