Pharmaceutical boss who hiked HIV drug price by 5000% arrested – resigns as CEO

Our more sharp eyed readers will remember we reported on Martin Shkreli a few months ago – the delightful chap who hiked the cost of an HIV drug by 5000% earlier this year

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by Ellie Hooper |
Published on

Our more sharp eyed readers will remember we reported on Martin Shkreli a few months ago – the delightful chap who hiked the cost of an HIV drug by 5000% earlier this year.

And despite defending his decision and continuing in his role as Chief Exec of Turing Pharamceuticals, Shkreli has now been arrested on suspicion of fraud.

The 32-year-old businessman has been accused of lying and deceiving investors in his company, in what is known as a ‘Ponzi scheme.’

He allegedly used assets from his former company to pay off debts at a hedge fund he also managed.

In addition, he also apparently defrauded investors, concealing that they were making bad investment choices.

Shkreli also allegedly used money from the hedge fund to use for personal expenses.

"Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit" US prosecutors told the media this week.

He denies all charges and has been released on bail, though he has now resigned as chief exec of Turing.

Shkreli and Turing drew criticism in September when they hiked the price of an HIV drug from $13.50 to $750, a 5000% increase in the cost.

According to a representative for the business mogul, Shkreli is confident he will be cleared of all charges.

N.B. The price hike is not the reason for the arrest.

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