The most hated man on the internet is going to prison – where he’s likely to be one of the most frequently loved men in the cell block.
The Federal Bureau of Investigations arrested Shkreli, the 32-year-old CEO of Turin Pharmaceuticals.
How do you become the most hated man on the internet? By buying a company that makes a life saving drug Daraprim and raising the price of said drug by 5,000% – that’s 50 times.
His arrest has nothing to do with price gouging, although you can certainly infer that he brought this on himself with plenty of bad karma.
Instead, he’s facing charges of wire fraud and security fraud. Prosecutors accuse him of taking stock from a firm he founded in 2011, Retrophin, and using that stock to pay off debt related to a hedge fund that collapsed after losing millions of dollars.
According to Daily Dot:
In a lawsuit filed in August, Retrophin accused Shkreli of a number of complex financial transactions that include poaching company funds in fraudulent transactions with investors in MSMB. The company also alleges that Shkreli used “fake consulting agreements,” as Bloomberg puts it, to pay off some MSMB investors, among other allegations of wrongdoing.
Writing on the investment forum Investorhub in February 2015, Shkreli shrugged off Retrophin’s allegations as “completely false, untrue at best and defamatory at worst.”
“I am confident that anyone who looked into the transactions would find them perfectly legal, reasonable and quite intelligent (the results of the company speak for themselves),” Shkreli added. “I welcome any scrutiny by any party and have faith any investigation will be resolved without issue—it would not be the first time and it won’t be the last that my moves have been looked at—this is not my first rodeo and I have too many scars to do something stupid.”
It is currently unclear what fate will become Shkreli due to his arrest, though Bloomberg reports that he may be barred from running a public company, which would put the future of Turing and his other businesses in jeopardy.
But wait! There’s more! The New York Attorney General’s office has launched a separate investigation into whether Turing intentionally impeded other companies from creating generic versions of the life saving drug to sell at a lower cost.
Despite the alleged interference, Imprimis Pharmaceuticals Inc. began selling its own version of Daraprim for approximately $1 per pill.