Shkreli Update: Pharma Bro Fired From Second Firm, Twitter Account Hacked

Dec 21 2015 | 1:08pm ET

The Martin Shkreli saga continues to unfold.

KaloBios has disclosed that it has also cut ties with the embattled former hedge fund manager, who was its CEO. Turing Pharmaceuticals, the company Shkreli led when he became nationally reviled earlier this year for hiking the price of 62-year old life-saving drug Daraprim from $13.50 to $750 per pill, said Shkreli resigned as CEO last week and has since been replaced by a new interim chief executive. 

Shkreli was charged with securities fraud and conspiracy last Thursday stemming from his stint as hedge fund manager. In the indictment, he is accused of diverting capital from another pharmaceutical company, Retrophin, in order to pay back investors who lost money in his fund, among other charges. 

Shkreli has pled not guilty in federal court and has been released on $5 million bail.

Meanwhile, a Twitter account reportedly belonging to Shkreli was apparently hacked over the weekend, displaying a number of tweets unlikely to be helpful to his defense. However, the messages were deleted as of Monday morning and replaced with a new message:

“I was hacked--I now have control of this account. -- @MartinShkreli

In a Wall Street Journal article published Monday, Shkreli said the authorities had targeted him because of his drug price increases.

“What do you do when you have the attention of millions of people? It seemed to me like it would be fun to experiment with,” added Shkreli in the interview. He was arrested because of a “social experiment and teasing people over the Internet,” essentially suggesting he was also targeted by authorities as a pretense for unapologetically thumbing his nose at his critics. 

A quick read through the SEC’s eight-count complaint, however, reveals concerns that predate anything Shkreli may have done with Daraprim.

Kayne Scholer partner Evan Greebel, who served as Retrophin’s outside counsel, was also arrested last week.


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