Martin Shkreli, a former hedge fund manager and the current CEO of two biopharmaceutical companies, is having a really bad day.
News broke earlier today that Shkreli -- who the BBC has referred to as "the most hated man in America" -- has been taken into custody and is being charged with securities fraud.
Federal prosecutors are alleging that Shkreli illegally took stock from Retrophin (NASDAQ:RTRX), a publicly traded biotechnology company that he started in 2011, and used it to pay off both personal loans and as well as the debts of his now-defunct hedge fund called MSMB Capital Management.
Authorities believe that Shkerli used Retrophin's stock to repay millions in losses that he generated while running the hedge fund. Prosecutors are alleging that he did so by making secret payoffs to former investors and disguising them as "consulting arrangements."
Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on. -H https://t.co/9Z0Aw7aI6h— Hillary Clinton (@HillaryClinton) September 21, 2015
Another Democratic candidate, Bernie Sanders, has also been railing against the skyrocketing cost of pharmaceutical prices and Shkreli actually tried to get a meeting with him by donating $2,700 to his campaign. Shkreli hoped that the move would allow him to meet with Sanders so he could better explain how drug pricing worked.
Sanders had no interest in meeting with Shkreli, calling him a "poster boy for drug company greed." Sanders donated the money to the Whitman-Walker health clinic instead.
Stirring the pot
Shkreli hasn't been doing himself any favors online during the year, either. He remained very active on Twitter, using the platform to defend his actions.
I like to stir the pot, but I would never, ever price a drug beyond a sick person's reach.— Martin Shkreli (@MartinShkreli) December 16, 2015
It's been a rough couple of months for Shkreli, culminating in today's arrest, but this is one case where he is going to have a heck of time garnering any sympathy for his actions.
I hate being in the news. Any way to turn it off?— Martin Shkreli (@MartinShkreli) December 10, 2015
Looks like the answer to that question today is a resounding no.
Brian Feroldi has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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