Martin Shkreli Faces More Legal Trouble
Appearing before a federal court in Brooklyn on Tuesday, Martin Shkreli faced existing fraud allegations. It was announced that additional legal proceedings loomed for him. The allegations center around illegally transferring funds between his companies to balance poor market positions for one of his enterprises.
The specifics of the new charges have yet to be disclosed; a court hearing is set for June 6th. Shkreli's attorney, Ben Brafman, expressed optimism following the hearing, stating, "I think today is a good day for Martin Shkreli." Brafman further added, "We do not believe that the indictment will in any way affect or change the indictment against Mr. Shkreli."
Regarding the indictment, Brafman declined to comment.
Background: Who is Martin Shkreli? Timeline
In court, Shkreli donned a conservative gray suit without a tie. When prosecutors mentioned "Retropin fraud," Shkreli's face contorted, and he pushed his glasses back onto his nose. CNNMoney attempted to interview Shkreli after appearing in front of Judge Kiyo Matsumoto but did not receive a response.
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Shkreli, the former CEO of Turing Pharmaceuticals, made headlines last year for raising Daraprim's price for cancer and AIDS patients overnight by a staggering 5,000%, increasing the price from $13.50 to $750 per pill. Shkreli argued that this was a necessary step to maintain profits.
Shkreli was not indicted for excessive pricing of Daraprim, despite this action being his most significant notoriety. Currently, Shkreli is accused of illegally transferring funds and lying to investors about his financial situation, claiming he managed assets that did not exist.
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According to court documents, Shkreli and co-defendant Evan Greebel used Retropin (RTRX) Investor funds, paying over $7.6 million to settle creditor claims with underperforming hedge funds (RTRX) denies any liability for these claims.
Shkreli appeared unperturbed by the possibility of prison time.
"I am confident I will win," Shkreli tweeted when he was arrested in December. "The allegations against me are baseless and ridiculous."
CNNMoney contributor Ahiza Garcia covered this story.
Further Reading:
The new allegations against Shkreli revolve around transferring illegal funds between companies to offset poor market positions for one of his ventures.
Shkreli emphasized that he was not concerned about the indictment but was adamant his lawyer should have access to all relevant evidence to provide an effective defense.
Sources:
Enrichment data:
The enrichment data reveals that Martin Shkreli, a controversial former executive of Turing Pharmaceuticals, is once again facing legal trouble for fraud-related charges. These charges stem from allegations of illegally transferring funds between his companies to balance poor market positions for one of his ventures. This is not a new issue; Shkreli has already been convicted of securities fraud related to price gouging with Daraprim, but these new charges are distinct.
However, it's important to note that Shkreli's actions, including price gouging Daraprim, are linked to broader societal issues, such as profiteering and dysfunction in the healthcare industry. These issues are not new charges against him.
The specifics of the new charges have not been disclosed, and it remains to be seen how they will impact his legal situation.
