The securities fraud charge brought against Shkreli could lead to a prison sentence of 20 years. He then started another drug company, Turing Pharmaceuticals, and where he made headlines by hiking the price of a life-saving drug by more than 5,000%. A Federal Bureau of Investigation official earlier said Shkreli pursued “a securities fraud trifecta of lies, deceit and greed”.
Shkreli is accused by federal prosecutors of using shell companies after his now defunct hedge fund MSMB Capital Management lost millions of dollars.
The day after Shkreli pleaded not guilty and posted $5 million bail, he resigned from another one of his companies, Turing Pharmaceuticals.
Last week, Shkreli was removed as chief executive of Turing Pharmaceuticals, a privately held company in NY that he co-founded late a year ago.
“‘Trying to find anything we could to stop him, ‘ was the attitude of the government”, Shkreli said in the interview as he was flanked by his attorneys, the Journal reported.
UC Davis and the Moffitt Cancer Center in Florida, which were running a clinical trial for a KaloBios drug to treat a form of leukemia, have suspended the trials “pending further analysis”, according to Bloomberg“. Its shares tumbled 70 percent in January after its drug for lung infections failed in testing. While shares of KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) remain halted by the NASDAQ pending the turnover of additional information by the company, this news certainly won’t do anything to alleviate investor’s fears.
Last month, Shkreli bought a majority interest in South San Francisco, California-based KaloBios and named himself CEO.
Shkreli resigned from the company’s board of directors and from its audit committee, KaloBios said in a statement.
He became the subject of widespread scorn in September for defiantly raising the price of Daraprim from $13.50 to $750 a pill, an increase he defended as “a good business decision”.
A day later, his Twitter account, which now features the name “Martin the God”, got hacked. The company announced it would shut down right before Shkreli and a group of investors swooped in with cash and pledges of financing to keep it going.
Shkreli added a tweet to the top of his Twitter feed Saturday saying that he was confident he would prevail.