Martin Shkreli Was Just Arrested

December 17th 2015

Kyle Jaeger

Martin Shkreli, the guy who has made a career of raising the prices of life-saving drugs such as Daraprim, was arrested by federal authorities on Thursday on charges of securities fraud.

RELATED: Martin Shkreli to Raise Price of Another Life-saving Drug

The case is not related to the drug pricing scandals that have made headlines in recent months. Rather, 32-year-old Shkreli has been accused of using money from a biopharmaceutical company, Retrophin, which he started as a hedge fund manager, as his own personal piggy bank, paying off investors who lost money at his hedge fund.

After Retrophin's board ousted Shkreli as chief executive last year, the company filed a lawsuit against him in August, alleging that he hired upset investors to work as "sham consultants" at Retrophin, for example. He dismissed the claims as false and said the company was trying to avoid paying him a severance.

"Shkreli was the paradigm faithless servant," Retrophin wrote in the complaint. "Starting sometime in early 2012, and continuing until he left the company, Shkreli used his control over Retrophin to enrich himself and to pay off claims of MSMB investors (who he had defrauded)."

The federal charges are apparently connected to the company's lawsuit, the New York Times reports. Investigators declined to provide additional details about the arrest, but federal officials are scheduled to discuss Shkreli's case at a press conference on Thursday.

While the charges are not related to drug pricing, Shkreli's role at Retrophin did involve acquiring and dramatically increasing the cost of life-saving drugs for rare diseases. ATTN: has extensively reported on developments associated with the price hikes of Daraprim and benznidazole, which occurred under Shkreli's companies Turing and KaloBios Pharmaceuticals.

RELATED: Martin Shkreli Is at the Center of yet Another Sleazy Controversy

He has been condemned by Democratic and Republican presidential candidates alike and was recently called before a special Senate committee as part of an ongoing investigation into the drug pricing practices of several pharmaceutical companies.

ATTN: reached out to Shkreli for comment, but he could not be reached by the time of publication.

Martin Shkreli's arrest proves karma's a b*tch.

Posted by ATTN: on Thursday, December 17, 2015