The Latest: Spokesman says Shkreli denies fraud charges

AP News
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Posted: Dec 17, 2015 9:23 PM
The Latest: Spokesman says Shkreli denies fraud charges

NEW YORK (AP) — The latest on the securities fraud arrest of Martin Shkreli, a pharmaceutical company executive who was vilified for ratcheting up the price of a life-saving drug. All times local:

9:20 p.m.

A spokesman for Martin Shkreli (SHKREHL'-ee) says the pharmaceutical company executive denies the securities fraud charges he's facing and "expects to be fully vindicated."

Says the spokesman, Craig Stevens, "It is no coincidence that these charges, the result of investigations which have been languishing for considerable time, have been filed at the same time of Shkreli's high-profile, controversial and yet unrelated activities."

Shkreli was publicly vilified after his company, Turing Pharmaceuticals, raised the price of a drug for a rare parasitic infection from $13.50 to $750 per pill.

The charges relate to his time at a different drug company he formerly ran, called Retrophin.

Prosecutors say that between 2009 and 2014, Shkreli lost hedge fund investors' money through bad trades, then raided Retrophin for $11 million in cash and stock to pay disgruntled clients.

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4:30 p.m.

Pharmaceutical company executive Martin Shkreli has been freed from custody after pleading not guilty to securities fraud charges in New York.

Shkreli had to push through a throng of news photographers to get to a waiting car after his release on a $5 million bond.

He didn't speak to reporters.

Shkreli was publicly vilified after his company, Turing Pharmaceuticals, raised the price of a drug for a rare parasitic infection from $13.50 to $750 per pill.

The charges relate to his time at a different drug company he formerly ran, called Retrophin.

Prosecutors say that between 2009 and 2014, Shkreli lost hedge fund investors' money through bad trades, then raided Retrophin for $11 million in cash and stock to pay disgruntled clients.

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3:30 p.m.

Former hedge fund manager and controversial pharmaceutical company CEO Martin Shkreli has pleaded not guilty through his lawyer to securities fraud charges.

Shkreli is charged in an indictment unconnected to the drug price hikes imposed by his company Turing Pharmaceuticals. The charges concern his actions at another pharmaceutical company, Retrophin, which he ran as CEO up until last year.

Prosecutors say in a "Ponzi-like scheme" between 2009 and 2014, Shkreli lost hedge fund investors' money through bad trades, then raided Retrophin for $11 million in cash and stock to pay back his disgruntled clients.

A magistrate judge agreed to release him on a $5 million bond.

Turing sparked outrage when the price of a drug for a rare parasitic infection went from $13.50 to $750 per pill.

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12:15 p.m.

A prosecutor says former hedge fund manager and controversial pharmaceutical company CEO Martin Shkreli lied to investors, used assets from a drug company to pay off investors in a hedge fund and tried to cover up what he was doing.

Brooklyn U.S Attorney Robert Capers said Thursday that Shkreli "engaged in multiple schemes to ensnare in investors through a web of lies and deceit." His comments came after Shkreli was arrested on securities fraud and other charges.

Calls to an attorney who has represented Shkreli in the past haven't been returned.

Shkreli sparked outrage his fall when his company, Turing Pharmaceuticals, raised the price of a drug for a rare parasitic infection from $13.50 to $750 per pill.

The criminal charges are unrelated to Turing. Some counts concern another drug company he once ran, Retrophin.

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8:40 a.m.

Martin Shkreli, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, is in custody following a securities probe.

Calls to an attorney that has represented Shkreli in the past were not immediately returned. His arrest was confirmed Thursday by FBI spokeswoman Kelly Langmesser.

A furor over the staggering price hike triggered multiple government investigations and pledges from politicians to rein in soaring prescription drug prices. Those include newly approved medicines costing around $100,000 a year and some old, formerly cheap generics.

Rising pharmaceutical prices has become a topic in the upcoming U.S. presidential race.