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Post by jpg on Dec 17, 2015 21:34:02 GMT -5
Sadly the only criminals that seem to be prosecuted are low level crooks like him. It may make a lot of people feel good when a inept crook (and from what I understand of what he did and how he did it he was a rather sloopy crook) gets caught but it changes absolutely nothing to the bigger problems of our investment systems.
GS et al must love this. 'Wall Street is getting cleaned up' except it isn't,..
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Post by kc on Dec 17, 2015 21:47:27 GMT -5
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Post by kc on Dec 17, 2015 21:50:13 GMT -5
Shkreli arrested per cnbc securities fraud the charge. Love it and love it. This made my day. Wonder if they will connect the dots back to his recommendations about MNKD to the FDA - and the association with FDA members having husbands who are hedge-fund managers...now wouldn't that be saweet. Hi to Margaret Hamburg and her husband's renaissance technology fund who shorted MannKind
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Post by Chris-C on Dec 18, 2015 1:50:59 GMT -5
Yeppers. The report of this indictment and arrest was the first news I heard this morning after I awoke, received from Alexa (the Echo personal assistant giving my flash news briefing). It brought a smile to my face and I had the same reaction as others experienced: Yes. Justice is sometimes served in the world. Yes. Karma hangs around to even things out.
It would not surprise me at all if, after posting his bail, Mr. Shkreli considers fleeing the country. It would also not surprise me if he had contingency plans for such an event, including falsified documents and offshore cash accounts. After all, it is his nature to be duplicitous.
Perhaps the Feds have wiretaps and surveillance to prevent such an occurrence. I hope so.
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Post by babaoriley on Dec 18, 2015 2:11:16 GMT -5
I don't know about the rest of you, but I just can't get over this awful development. Imagine innocent young Marty, who never did a thing to hurt anyone, locked up, at least until bail. It's enough to cause me to lose sleep.
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Post by peppy on Dec 18, 2015 6:11:12 GMT -5
Beating a dead horse, the charges.
II. The Fraudulent Schemes 7. In or about and between September 2009 and September 2014, the defendant MARTIN SHKRELI, together with the defendant EV AN GREEBEL and others, orchestrated three interrelated fraudulent schemes: a. a scheme to defraud investors and potential investors in MSMB Capital by inducing them to invest in MSMB Capital through material misrepresentations and omissions about, inter alia, the prior performance of the fund, its assets under management and the retaining of an independent auditor and administrator; and then by preventing redemptions by investors in MSMB Capital through material misrepresentations and omissions about, inter alia, the performance of the fund and the misappropriation by SHKRELI and others of fund assets; b. a scheme to defraud investors and potential investors in MSMB Healthcare by inducing them to invest in MSMB Healthcare through material misrepresentations and omissions about, inter alia, the prior performance of the fund, its assets under management and existing liabilities; and then by preventing redemptions by the investors through material 3 Case 1:15-cr-00637-KAM Document 1 Filed 12/14/15 Page 3 of 29 PageID #: 3 'I misrepresentations and omissions about, inter alia, the perf onnance of the fund and the misappropriation by SHKRELI and others of fund assets; and c. a scheme to defraud Retrophin by misappropriating Retrophin' s assets through material misrepresentations and omissions in an effort to satisfy SHKRELI' s personal and unrelated professional debts and obligations. Specifically, SHKRELI, assisted by GREEBEL and others, defrauded Retrophin by causing it to: (i) transfer Retrophin shares to MSMB Capital even though MS~B Capital never invested in Retrophin; (ii) enter into settlement agreements with defrauded MSMB Capital and MSMB Healthcare investors to settle liabilities owed by the MSMB Capital and MSMB Healthcare funds (the "MSMB Funds") and SHKRELI; and (iii) enter into sham consulting-agreements with other defrauded MSMB Capital, MSMB Healthcare and Elea Capital investors as an alternative means to settle liabilities owed by the MSMB Funds and SHKRELI. A. The MSMB Capital Hedge Fund Scheme
Additionally, SHKRELI failed to disclose to the Capital Limited Partners that he had lost all the money he managed in Elea Capital, his prior hedge fund, and that there was a $2.3 million default judgment against him from Lehman Brothers resulting from his tradi~g activity.
22. In or about March 2011, the defendant MARTIN SHKRELI valued Retrophin LLC as a $20 million company based on 100,000 outstanding shares and SHKRELI' s valuation that each share or unit was worth $200, even though Retrophin LLC had no products or assets. In 2011 and 2012, SHKRELI began using MSMB Healthcare funds to invest in Retrophin LLC and solicited investments in Retrophin LLC, including additional investments from Capital Limited Partners and Healthcare Limited Partners who had been misled by SHKRELI and others that their investments were performing exceptionally well. These investments were recorded on Retrophin LLC's capitalization table.
MARTIN SHKRELI and EV AN GREEBEL, among others, revealed that MSMB Healthcare had invested approximately $2,135,000 in Retrophin LLC. The records did not reflect any investments by MSMB Capital. Similarly, as of September 5, 2012, the capitalization table, which was reviewed by SHKRELI and GREEBEL, among others, revealed approximately $5 million in investments in Retrophin LLC, but no investments by MSMB Capital.
Additionally, SHKRELI claimed that MSMB Capital was still active, had $2,600,000 in assets under management and was in the process of being liquidated. Contrary to these representations, MSMB Capital had essentially no assets following the February 2011 OREX trades and was in debt to Merrill Lynch.
35. In sum, the defendants MARTIN SHKRELI and EV AN GREEBEL, together with others, caused Retrophin to pay more than $7.6 million in cash and RTRX stock through sham consulting agreements to settle claims with Capital Limited Partners and Healthcare Limited Partners even though Retrophin was not responsible for those claims.
media.bloomberg.com/bb/avfile/rjMmmf1jHzI0
============================================================================= A small time con artist.
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Post by Deleted on Dec 18, 2015 7:18:44 GMT -5
As Turing Pharmaceuticals Chief Executive Officer Martin Shkreli contends with charges of securities fraud, major U.S. pharmacies are moving to assure patients of continued access to the company's key drug, Daraprim.Shkreli was arrested on Thursday for engaging in what U.S. prosecutors said was a Ponzi-like scheme at his former hedge fund and a pharmaceutical company he previously headed . Turing officials did not respond to multiple requests for comment on the company's future plans regarding Shkreli or its drug distribution.Leading pharmacy chain Walgreens Boots Alliance Inc, currently the exclusive U.S. supplier of Daraprim, said it has inventory of the drug, which has a list price of $750 per dose. But growing public backlash against that price has resulted in the entry of new competitors - compounding pharmacies able to produce similar versions for a fraction of the cost.CVS Health Corp, the No. 2 U.S. drug benefit manager, told Reuters on Thursday it can provide an alternative to Daraprim that is compounded by Avella Specialty Pharmacy, at a price of $30 per 30 pills. The 62-year-old treatment is used to fight parasitic infections in AIDS patients, pregnant women and others.The CVS arrangement is similar to one between Imprimis Pharmaceuticals Inc, a compounding pharmacy based in San Diego, and Express Scripts Holdings Inc, the largest U.S. manager of prescription drug plans, to offer lower-cost pyrimethamine, the generic version of Daraprim.Compounding pharmacies operate differently from drug manufacturers whose treatments must be approved by the U.S. Food and Drug Administration for mass sale. Instead, such pharmacies can prepare medications only for individual patients once they have a prescription, and must comply with state and federal regulations.Meanwhile, several major medical groups have started to urge doctors to seek out such lower-cost alternatives to Daraprim, providing detailed instructions on how to do so.Walgreens said in an emailed statement that it has "urged Turing to expand the number of specialty pharmacies to promote greater access, and it is our understanding that they will be doing so in the near future." Turing officials could not be reached for comment.Turing, founded by Shkreli early this year, has made front-page headlines since it bought the rights to Daraprim in August for $55 million from Impax Laboratories Inc. With no rival manufacturers making the drug, Turing quickly raised the price for a tablet of Daraprim to $750 from $13.50.The move sparked widespread criticism - first by medical groups such as the Infectious Diseases Society of America and the HIV Medicine Association, followed by presidential candidates Hillary Clinton, Bernie Sanders, and Donald Trump.Overnight, the tiny company was vilified as an example of pharmaceutical industry greed, an accusation also leveled at much bigger players like Gilead Sciences Inc and Valeant Pharmaceuticals International Inc.Turing said last month that it would not change the list price of Daraprim, but would offer the drug to hospitals at a discount of up to 50 percent."We don't have any reason to believe that the allegations of an investment Ponzi scheme by Turing's CEO will encumber production of Daraprim," a spokesman for Kaiser Foundation Health Plan said in an emailed statement. "However, we are still waiting to see proof of Mr. Shkreli's promise to reduce the price of this needed generic drug."Shkreli, who began his career working for various hedge funds, in 2008 formed a partnership to launch MSMB Capital Management, which became known for filing requests to the Food and Drug Administration to reject products developed by Navidea Biopharmaceuticals and MannKind Corp. MSMB profited by selling short the stock of both companies.Retrophin Inc, initially a portfolio company operated from the MSMB offices, was created in 2011 with an emphasis on biotechnology. Shkreli was president and CEO at Retrophin, which says it focuses on treatments for serious, catastrophic, or rare diseases, until October 2014, when he was fired by the company's board.Retrophin's board earlier this year accused Shkreli in a lawsuit of using $65 million in company funds to repay MSMB investors who had lost money. Shkreli also sits on Turing's board along with Chairman Ron Tilles, who formerly worked at Retrophin, and one other member, Walter C. Blum, according to the company's website.Imprimis CEO Mark Baum said that even if Turing's other investors decided to remove Shkreli, that alone would not be enough to change the fortunes of Daraprim. While at Retrophin, Shkreli hiked the price of its key drug, Thiola for kidney stones, to $30 a pill from $1.50. That price has not changed since Shkreli left."Once Turing went and paid what it did to buy that drug, they were locked into raising the price," Baum said.
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Post by peppy on Dec 18, 2015 7:31:05 GMT -5
my guess, the jury will find the public needs to be protected from him. I see Lithium in his future.
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Post by avogadro on Dec 18, 2015 9:19:54 GMT -5
At least the Shkreli arrest gets our minds off other problems like inept MNKD management, lousy sales of Afrezza, a double-crossing marketing partner and many others major irritants.
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Post by mindovermatter on Dec 18, 2015 9:42:45 GMT -5
At least the Shkreli arrest gets our minds off other problems like inept MNKD management, lousy sales of Afrezza, a double-crossing marketing partner and many others major irritants. And you'll be glad to know that once MNKD competitor BIOD is looking for STRATEGIC ALTERNATIVES to save itself. finance.yahoo.com/news/inplay-briefing-com-055139997.html#biod
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Post by mnholdem on Dec 18, 2015 10:14:38 GMT -5
I don't know about the rest of you, but I just can't get over this awful development. Imagine innocent young Marty, who never did a thing to hurt anyone, locked up, at least until bail. It's enough to cause me to lose sleep. For a moment, I thought I might shed a tear... okay, I'm over it.
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Post by novafett on Dec 18, 2015 10:30:19 GMT -5
I have to say for me this is an opportune time for me to use a situation like this as an object lesson for my 8 year old who is an adept and regular liar. Someone who grows up not knowing there are consequences for lying and/or was able to get away with lying and at no point stops or at the very least curbs the pattern can end up in a place like this. We all lie obviously but for some deceit becomes a way of life.
I'd bet this didn't start for Shkreli 5 years ago or even 10. It probably started just like my 8 year old kid, got perfected over time (High School, early business experience/ relationships, and didn't stop til he got caught in a big way. Very sad, well deserved but a sad way to end up and again like i said, a great object lesson for the kiddo.
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Post by rch51 on Dec 18, 2015 10:47:40 GMT -5
At least the Shkreli arrest gets our minds off other problems like inept MNKD management, lousy sales of Afrezza, a double-crossing marketing partner and many others major irritants. Oh, please! Enough already.
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Post by harryx1 on Dec 18, 2015 12:46:41 GMT -5
Turing names new CEO to replace Shkreli
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Post by garrett on Dec 18, 2015 16:07:04 GMT -5
Two 6MM stock orders traded at market close today - must have been Shkreli
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