‘Pharma Bro’ Martin Shkreli convicted of fraud
Martin Shkreli, the infamous former CEO of Turing Pharmaceuticals, has been found guilty of securities fraud.
CNBC reports that a jury on Friday found the 34-year-old Shkreli — who earned the nickname “Pharma Bro” after he became the public face of price gouging in the pharmaceutical industry — guilty of multiple criminal charges.
Shkreli now faces years in prison after being found guilty of two charges of securities fraud and one charge of conspiracy to commit securities fraud. The former Turing CEO was found not guilty of five other fraud-related charges.
Shkreli was arrested in late 2015 on securities fraud charges, as authorities alleged he took stock from a biotechnology firm he founded and used it to pay off debts for unrelated business dealings.
“Prosecutors said a mountain of testimony and evidence at trial showed that Shkreli duped multiple investors into putting millions of dollars into two hedge funds he ran… by falsely claiming to have an excellent record of running such funds,” writes CNBC. “After getting their money, prosecutor said, Shkreli quickly lost much of it, and also used some of it to capitalize his infant pharmaceuticals company, Retrophin, even as he continued sending out financial statements to investors claiming positive returns.”
Shkreli first gained notoriety after it was revealed that his company Turing Pharmaceuticals raised the price of an important AIDS-related drug called Daraprim from $13.50 per tablet to $750 per tablet.