Big Pharma Exec/League of Legends Team Chairman Arrested on Fraud Charges [UPDATE]
Martin Shkreli no longer CEO of Turing Pharmaceutical and drops out of League of Legends team position, sources says.
[UPDATE] Shkreli is no longer the CEO of Turing Pharmaceutical, the company announced in a press release. Additionally, sources have told Polygon that he's also left his post as chairman of League of Legends professional squad, Team Imagine. He was released after posting a $5 million bond.
The original story is below.
Bloomberg and The New York Times are reporting that Martin Shkreli, who made global headlines in September when his pharmaceutical company raised the price of a life-saving drug by more than 5,000 percent, was arrested this morning in his Manhattan home on securities fraud charges. Shkreli is also the chairman of Team Imagine, a professional League of Legends team. On Twitter, Shkreli calls himself a "gaming enthusiast."
The 32-year-old's arrest today, however, does not pertain to price-gouging. From the Bloomberg report:
"Prosecutors in Brooklyn charged him with illegally taking stock from Retrophin Inc., a biotechnology firm he started in 2011, and using it to pay off debts from unrelated business dealings," the report says. "Federal prosecutors accused Shkreli of engaging in a complicated shell game after his defunct hedge fund, MSMB Capital Management, lost millions. He is alleged to have made secret payoffs and set up sham consulting arrangements."
Shkreli is the CEO of Turing Pharmaceutical. These new charges run alongside a lawsuit he's facing from Retrophin, another pharmaceutical company that ousted him as CEO in 2014, Bloomberg reports.
A New York-based lawyer was also arrested Thursday morning and is accused of conspiring with Shkreli, according to the report. More details on the case are expected to be divulged during a press conference later today.
Shkreli started the League of Legends team Odyssey in April; it merged with Team Imagine in August. We have contacted representatives for the team and will update this story with anything we hear back.
Shkreli found himself in hot water after his company acquired the 62-year-old drug Daraprim in August and later raised the price from $13.50 per tablet to $750, an increase of over 5,000 percent. He told GameSpot sister site CBS News back in September that the price increase is "not excessive at all."
In other news about Shkreli, he recently paid millions for an ultra-rare Wu-Tang Clang album and told Bloomberg News that he hasn't listened to it yet.
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