Martin Shkreli is the former chief executive of the Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc., and he cuts a controversial figure. Regular Digital Journal readers will be familiar with Shkreli. Last year, Brett Wilkins reported that Turing had purchased an infection fighting drug (which is used to help some people infected with HIV), and hiked the price up from $13.50 to $750 per pill. The drug was called Daraprim, and it is designed to treat an AIDS-associated illness (a parasitic disease called toxoplasmosis, which poses a risk to those with a compromised immune system.) This price hike enraged medical professionals and many politicians.
Then, just before Christmas, we reported Shkreli had been arrested. The detainment was in relation to a seven-count indictment for the crimes of securities fraud, securities fraud conspiracy and wire fraud conspiracy. This related to Shkreli’s time as a hedge fund manager for MSMB Capital and MSMB Healthcare Management LP., as well as having a third job as an executive on the board of Retrophin Inc. The prosecution charge is that Shkreli sought to defraud investors at MSMB Capital and MSMB Healthcare while simultaneously attempting to misappropriate Retrophin funds in order to repay MSMB shareholders. This is a complex case and it will take some time to untangle the web of financial transactions.
Now released, pending the hearing of the case, Shkreli has been called to attend Congress to discuss the marketing of the Daraprim medication.
Speaking on Fox News, Shkreli maintained a defiant stance. According to Pharmaceutical Processing, he told the news network he was keen to “berate them” and “insult them” Congress. However, he would be putting those feelings to one side and would instead take the Fifth Amendment when questioned. He stated he was keen to avoid self-incrimination.
At the same time, Martin Shkreli’s lawyer, Benjamin Brafman, issued a statement where he expressed confidence that Shkreli will be exonerated in the upcoming federal court case over the securities issue.
On February 3, Shkreli was due in court for a preliminary hearing. He is set to face Congress on February 4, 2016.
