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Tag: Martin Shkreli

  • The 6 Worst Health Scandals of the Past 25 Years

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    In medicine, there’s almost no such thing as a free lunch. Just about every drug or intervention will have its side effects.

    Ideally, rigorous studies and the regulatory process will ensure that an approved drug’s benefits clearly outweigh any potential harms. But sometimes, researchers (and patients) will uncover side effects that went unnoticed during the approval process. Other times, more rarely, a drug’s maker is revealed to have buried incriminating information about their drug’s harms from the public or to have created a product that doesn’t work at all as intended. And when that happens, a bad or ineffective treatment can spark a major scandal.

    There’s no shortage of pharmaceutical scandals that have occurred over the years, but to keep things short, let’s just focus on some of the biggest ones to have happened in this quarter-century.

    1. Johnson & Johnson’s talcum powder products

    For decades, people had unsuccessfully tried to sue J&J over its consumer products containing talc, particularly baby powder, claiming that the products had contributed to their cancers.

    In 2018, however, an explosive report from Reuters found the company had hidden evidence that the talc it used could sometimes contain detectable levels of asbestos, a known carcinogen. The report helped fuel a new wave of lawsuits and growing public distrust in the company’s baby powder products. In the years since, the company has repeatedly lost civil suits over its talc products, some totaling into the billions, and its appeals continued to fail, even before the Supreme Court.

    Though J&J has maintained that its products are safe, the company eventually removed talc from all its powder brands (instead using cornstarch), tried and failed to cover its liability over these lawsuits by having a subsidiary declare bankruptcy, and even this year has continued to lose court cases tying its products to people’s cancer.

    Interestingly enough, though asbestos is known to cause cancer, past research hasn’t found a clear link between talc as a whole (including asbestos-free talc) and cancer, and there remains some disagreement over the extent of the risk posed by talcum powder products. The American Cancer Society states that if talc can raise a person’s risk of ovarian cancer (the primary type of cancer linked to talc), the “overall increase is likely to very be small” for an individual woman. The World Health Organization has stated that asbestos-containing talc should be considered carcinogenic, while talc in general is “probably carcinogenic.

    2. Biogen and the Alzheimer’s drug that wasn’t

    In June 2021, the FDA approved Biogen and Eisai’s antibody-based Alzheimer’s drug Aduhelm. At first glance, the approval should have been good news: the first drug of its kind, and one intended to actually target a key driver of the degenerative disorder, beta amyloid. But in actuality, it was anything but.

    In a rare move at the time, the FDA went against the recommendations of its expert advisory panel, who voted against approval. The outside experts rightly noted that the data supporting the drug’s effectiveness was mixed at best. The FDA also granted Aduhelm accelerated approval, a special category that requires less rigorous evidence. Media outlet STAT News later uncovered an unusually friendly relationship between top Biogen employees and FDA officials, which prompted a Congressional investigation into the matter. And to add insult to injury, Biogen initially set Aduhelm’s list price at $56,000 a year—a cost high enough to potentially devastate the pockets of patients and Medicare if the drug saw widespread use among older Americans.

    Many doctors soon rebelled against the approval, refusing to prescribe it to their patients, while Medicare decided to severely restrict its coverage of the drug. Biogen eventually gave up trying to make Aduhelm a thing, following years of poor sales, and pulled the drug from the market in early 2024.

    This saga does have a bit of a happy ending, at least. There have been other similar drugs developed and approved in recent years, and unlike Aduhelm, these drugs do seem to have a real, if still modest, effect on treating the condition.

    3. Purdue Pharma and OxyContin

    Purdue Pharma has perhaps become the most infamous poster child for the opioid crisis.

    Bottles of Oxycontin. © PureRadiancePhoto via Shutterstock

    Its blockbuster drug, OxyContin, helped fuel growing rates of opioid use disorder following its release to the public in 1996. And though there are many drivers of the crisis, including the proliferation of more potent agents like fentanyl in later years, the company did eventually admit to downplaying the addictive risk of its products, paying doctors illegal kickbacks to prescribe their drugs, and turning a blind eye to the widespread diversion of its drugs from pharmacies to the black market.

    Following a glut of civil and federal lawsuits over OxyContin, Purdue Pharma shuttered its doors, and its sole owners—the Sackler family—agreed to pay out more than $4 billion as part of a far-reaching settlement in 2021. The courts bumped this up to $6 billion in 2023. That settlement, however, also provided immunity from further civil charges against the Sacklers themselves. And though the situation has finally started to improve as of late, roughly 50,000 Americans still died from opioid overdoses last year.

    4. Martin Shkreli’s drug price surge

    Sometimes the scandals aren’t about the drugs themselves, but what they’re being sold for.

    In 2015, Martin Shkreli became public enemy number one when his company, Turing Pharmaceuticals, bought the anti-parasitic and anti-HIV drug Daraprim and raised its $13.50 price tag per pill by over 5,000 percent. Shkreli’s cocky, unrepentant attitude toward his many critics earned him the nickname of the “Pharma bro.”

    Ironically enough, his initial downfall had nothing to do with Daraprim. Soon after he became infamous, federal prosecutors in New York charged Shkreli with securities fraud, and in 2017, he was convicted and sentenced to seven years of federal prison.

    Martin Shkreli
    Martin Shkreli speaks to the press after the jury issued a verdict in his case at the U.S. District Court for the Eastern District of New York, August 4, 2017.  © Drew Angerer via Getty

    Though Shkreli was released early in 2022, his company’s management of Daraprim did later come back to bite him. In 2020, the FTC and others sued the company, now called Vyera Pharmaceuticals after Shkreli’s imprisonment, alleging that it carried out an “elaborate anticompetitive scheme” to maintain its monopoly on the drug. The company reached a settlement with the FTC a year later, and the legal battle eventually required Shkreli himself to pay out a $64 million fine and to stay away from the pharmaceutical industry entirely. In 2023, Vyera declared bankruptcy and sold the rights to Daraprim. Last year, the U.S. Supreme Court snubbed Shkreli’s attempt to dismiss his personal fine and ban.

    Don’t feel too bad for Shkreli, though. Since his release from prison, he’s been busy trying to shill crypto and AI knockoffs of WebMD.

    5. Abbott’s tainted baby formula

    Powderedbabyformula
    Baby formula powder in a measuring scoop © Strigana via Shutterstock

    In early 2022, the FDA warned families to stay away from certain powdered baby formulas produced by the company Abbott Nutrition. The products, it turns out, were contaminated by Cronobacter bacteria.

    Several children were hospitalized, and two infants who had consumed the products later died. Abbott issued a widespread recall of its products and shut down its formula production facility in Sturgis, Michigan. The FDA’s investigation concluded that Abbott had failed to maintain sanitary conditions and that the facility had at least eight recent instances of Cronobacter contamination dating back to 2019.

    It would take four months for the company’s Sturgis plant to reopen, following an agreement with the FDA to overhaul its safety practices, the length of which helped contribute to a nationwide formula shortage that year. Lawmakers on both sides also criticized the FDA for its delayed response to the crisis, since the agency first caught wind of potential issues as early as September 2021.

    Though there haven’t been similar recalls or reported outbreaks since, an extensive ProPublica report in April 2025 interviewed workers who claimed that the Sturgis plant continues to have serious safety and sanitary risks to this day. One employee reported what they found to the FDA, but it’s unclear whether the new Trump administration will take action.

    6. Elizabeth Holmes and Theranos

    Elizabeth Holmes founded the company Theranos in 2003. It centered around the development of a device intended to make blood tests easier than ever. With just a few drops of blood from a single finger prick, Holmes claimed, her company’s “Edison” device could accurately detect a litany of health conditions. By the mid-2010s, Holmes’ marketing of Theranos had allowed her to become a darling of the biotech world: a young, self-made entrepreneur styled after Steve Jobs, who at one point was worth nearly $5 billion.

    The trouble was, as the world eventually found out, it was all based on falsehoods. Starting in late 2015, Wall Street Journal reporter John Carreyrou exposed the fraudulent practices of Holmes and Theranos. Though Holmes had struck a partnership with retail chain Walgreens in 2013 to provide the Edison device to its customers, the Edison could simply never do what Holmes claimed it could. And eventually, the company secretly resorted to using other commercially available machines to perform most of its blood testing services.

    Holmes’ deception didn’t just mislead investors; several people reported that the faulty test results provided by Theranos made them fearful about having medical conditions they didn’t actually have, such as HIV, or otherwise harmed their health.

    Holmes was convicted of investor fraud and other charges over Theranos in 2022 and was sentenced to an 11-year stint in prison (later reduced by two years), while her co-executive and one-time romantic partner Ramesh “Sunny” Balwani was sentenced to nearly 13 years the next month. As of this year, she’s made her return to social media (via having someone else post her words).

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    Ed Cara

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  • Martin Shkreli has to face claims of copying one-of-a-kind Wu-Tang Clan album

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    Martin Shkreli, better known as Pharma Bro for his price-gouging antics with AIDS medication Daraprim, is going to have to defend against claims of misappropriating trade secrets with the unique Wu-Tang Clan album, Once Upon a Time in Shaolin. Earlier this week, US District Court Judge Pamela Chen wrote in a decision that Shkreli has to face a lawsuit that accuses him of improperly saving copies and playing the one-of-a-kind album for followers, which reduced its value and exclusivity.

    The lawsuit was filed by PleasrDAO — which, according to its own website, is a collective of people involved with cryptocurrency, NFTs and digital art. Once Upon a Time in Shaolin has a strange ownership history, starting with Shkreli purchasing the one-of-one studio album in 2015 for $2 million. After a fraud conviction, Shkreli had to forfeit his assets, including the album, leading to PleasrDAO acquiring it in a government auction for $4 million.

    On top of the album’s highly exclusive nature, it has a condition where it can’t be “commercially exploited for 88 years” by any subsequent owners. The collective’s argument stems from claims that Shkreli admitted in livestreams that he made copies of the album and played it for his followers, even allegedly posting “LOL i have the mp3s you moron” in response to a member of PleasrDAO posting a photo of the album. If PleasrDAO wins the case, Shkreli will have to give up any copies of the album, as well as provide info on all copies, who they were distributed to and what profits he made from it.

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    Jackson Chen

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  • Martin Shkreli Sued for Copying and Playing Wu-Tang Clan Album Without Permission

    Martin Shkreli Sued for Copying and Playing Wu-Tang Clan Album Without Permission

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    PleasrDAO, the digital art collective that owns the one-of-a-kind Wu-Tang Clan album Once Upon a Time in Shaolin, has sued the album’s previous owner, disgraced former pharmaceutical executive, Martin Shkreli, for copying the album and playing it for online audiences without permission.

    In its lawsuit—filed on June 10 in a Brooklyn federal court and viewed by Pitchfork—PleasrDAO outlines the largely public history of Once Upon a Time in Shaolin. Shkreli bought the album in 2015 for $2 million. That same year, he was arrested, and he was convicted, in 2017, of committing securities fraud. Shkreli was sentenced to seven years in federal prison and ordered to forfeit nearly $7.4 million in assets, including the Wu-Tang Clan album. Shkreli was released from prison in 2022, but, while he was incarcerated, PleasrDAO bought Once Upon a Time in Shaolin for $4 million.

    According to the lawsuit, Shkreli is still beholden to certain aspects of the forfeiture order, including the requirement that he “take[s] all reasonable steps, and bear all costs necessary, to ensure that all the Substitute Assets [i.e., Once Upon a Time in Shaolin] are preserved and maintained in good and marketable condition, and are not damaged, diluted or diminished in value as a result of any actions taken or not taken by the defendant and his representatives.”

    Shkreli, the lawsuit argues, has violated the forfeiture order by making copies of the album and playing it publicly—something he’s readily admitted to have done, including as recently as the day before the lawsuit was filed when he posted on X, “well @pleasrdao blocked me from their account so i think i will play the album on spaces now.”

    In the lawsuit, PleasrDAO states, “Any dissemination of the Album’s music to the general public greatly diminishes and/or destroys the Album’s value, and significantly damages PleasrDAO’s reputation and ability to commercially exploit the Album.”

    In addition, PleasrDAO argues that Shkreli has gained his own unjust enrichment through the promotion of his allegedly illicit Wu-Tang Clan music files.

    PleasrDAO and its lawyer are asking for an inventory of the files that Shkreli has, the seizure of his copies, damages, and more.

    In various posts on X, Shkreli has mocked PleasrDAO for suing him and defended his actions. Pitchfork has reached out to PleasrDAO’s attorney, Steven Cooper, for comment and more information.

    Beginning on Saturday, Once Upon a Time in Shaolin will be played publicly for an exhibition at Australia’s Museum of Old and New Art (MONA). A contract stipulates that the album cannot be commercially exploited until 2109, but it can be played at private listening events such as MONA’s.

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    Matthew Strauss

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  • From ’30 Under 30′ to Fraud: The Dark Side of Early Success | Entrepreneur

    From ’30 Under 30′ to Fraud: The Dark Side of Early Success | Entrepreneur

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    In June, Nate Paul, an investor once regarded as a “real estate prodigy,” was indicted on eight felony charges for allegedly making false statements on loan applications, which ultimately led to banks loaning the investor over $170 million. According to the indictment, in one application, Paul claimed to have an account with $31.6 million in cash, when in reality the account in question had less than $500,000. Paul’s alleged violations took place between March 2017 and April 2018.

    In 2017, Paul was named in Forbes Magazine’s much sought-after list of “30 Under 30,” a compilation that pays homage to those who have made remarkable strides in the business world before the age of 31. However, his recent indictment isn’t just a one-off situation wherein a businessman turned out to be a possible con.

    Paul, who pleaded not guilty to the charges and awaits trial, has joined the infamous group of “30 Under 30” honorees who were praised by the public for their early success — before authorities discovered the illicit shortcuts that got them there.

    Since 2011, the magazine has used the annual list to celebrate and honor entrepreneurs who have excelled in their fields early in their careers. The company thoroughly vets each of the nearly 100,000 nominees annually. As the Guardian’s Betsy Reed notes, “The problem here isn’t Forbes, the problem is the vision of success that we’ve been sold and the fetishizing of youth. 30 Under 30 isn’t just a list, it’s a mentality: a pressure to achieve great things before youth slips away from you.”

    So, next time you’re feeling discouraged about not reaching your goals by a certain age, remember these entrepreneurs-turned-felons who were once honored for their accomplishments in their youth. And those accomplishments? They wouldn’t have been possible without cutting corners and crossing legal lines.

    Sam Bankman-Fried

    Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, was named to the list in 2021 for Finance.

    Bankman-Fried started Alameda Research in 2017, and later founded FTX in 2019, which was valued at $32 billion in 2022. But in November of that year, FTX filed for bankruptcy after struggling to raise funds and facing a liquidity crisis, and U.S. prosecutors accused him of fraud. He was arrested in the Bahamas in December 2022 and charged with defrauding investors in a scheme that led to the bankruptcy of his company.

    In February, four additional charges were added to his docket for conspiring to make over 300 illegal political donations. Currently, Bankman-Fried is out on bail, living at his parents’ house, and awaiting trial (which is scheduled for October).

    Related: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

    Elizabeth Holmes

    Elizabeth Holmes founded Theranos in 2003, a company that promised a revolutionary blood testing technology, and was once hailed as the world’s “youngest self-made female billionaire.” The company caught the attention of high-profile investors and companies (many of which never even saw the technology before investing) and raked up partnerships with big-name brands like Safeway and Walgreens.

    Holmes was never officially on the “30 Under 30” list, however, she did headline the “Under 30 Summit” in 2015, where she also accepted the “Under 30 Doers Award” for her work in the healthcare industry and the potential impact of her company’s technology.

    However, just weeks after accepting her Doers Award, Holmes became the subject of an investigation by The Wall Street Journal, raising questions about the legitimacy of her technology. What ensued was nothing short of one mishap after another: failed lab inspections, a slew of lawsuits, and the not-to-be-forgotten net worth dip of $4.5 billion to $0 in 2016.

    Finally, in 2018, it was revealed that the technology simply didn’t work, the company collapsed, and Holmes was charged by the SEC with “massive fraud,” alleging Holmes knowingly misled investors and the public.

    Elizabeth Holmes speaking during the 2015 Fortune Global Forum in San Francisco, California, in 2015. David Paul Morris | Getty Images.

    After nearly a year of delays due to the pandemic, Holmes’ trial began in 2021, and she was ultimately convicted on four counts of fraud in 2022 and sentenced to 11 years in prison. After a request for a new trial was denied in November 2022, Holmes began her sentence in May 2023. Through it all, Holmes has maintained her innocence. She is currently serving time in prison in Bryan, Texas.

    Holmes’ story of deceit has been the subject of widespread media coverage, including a 2019 HBO documentary, The Inventor, and 2022 Hulu miniseries, The Dropout (for which Amanda Seyfried won an Emmy for her portrayal of the disgraced founder).

    Related: I Worked Side By Side With Elizabeth Holmes. She Seemed Like a Visionary, but We Were All Duped — and It’s a Comfort to See Justice Served.

    Charlie Javice

    Charlie Javice, known for her college financial planning startup Frank, was indicted in May 2023 for wire fraud, bank fraud, and conspiracy charges. Javice’s alleged crimes center on exaggerating the value of her startup during its acquisition by JPMorgan Chase in 2021.

    Javice was named to the list in 2019 in the category of Finance after founding her company Frank, which aimed to help students apply for loans more efficiently.

    Prosecutors claim that she misled the bank by fabricating data and inflating the number of Frank customers. Javice allegedly asked her director of engineering to create fake data, but when he refused, she hired a data scientist to generate a spreadsheet with millions of false user accounts for the $175 million acquisition, and JPMorgan ultimately acquired the app.

    However, in November 2022, an internal investigation led to her termination, followed by her arrest in April. In January 2023, JP Morgan sued Javice for defrauding the company. Javice now faces charges of securities fraud, wire fraud, bank fraud, and conspiracy. She is currently out on bail and has maintained her plea of not guilty.

    Martin Skrekli

    Martin Shkreli was named to the list in 2012 for Finance. At the time, he was recognized for his work as a hedge fund manager and entrepreneur. Shkreli had gained attention for his success in the biotech industry, particularly his involvement with Retrophin, a pharmaceutical company he founded.

    Shkreli went on to co-founded several hedge funds and pharmaceutical companies, including Turing Pharmaceuticals, which notoriously acquired the life-saving antiparasitic and antimalarial drug, Daraprim and then raised its price by 5,455% in 2015. The move earned Shkreli, then called “Pharma Bro,” another title: “the most hated man in America.”

    In December 2015, he was arrested on charges of securities fraud and conspiracy. The charges stemmed from his involvement with two hedge funds, MSMB Capital Management and MSMB Healthcare, as well as Retrophin.

    Shkreli was accused of mismanaging funds, using assets from one of his companies to pay off debts from another, and defrauding investors. The allegations included a scheme in which he illegally used Retrophin’s assets to repay investors who had lost money in his hedge funds.

    Peter Foley | Getty Images

    In 2017, he was convicted of securities fraud and conspiracy, resulting in a seven-year prison sentence and significant fines.

    In 2022, Shkreli was released from prison (about four months early) and is now consulting for a law firm and living with his sister in Queens, New York, according to the U.S. Probation Office.

    Related: ‘The Most Hated Man in America’ Where Is Pharma Bro Martin Shkreli Now?

    Shkreli also gained notoriety in 2015 when he purchased the sole copy of the Wu-Tang Clan album, “Once Upon a Time in Shaolin,” for $2 million at an auction. Fans and the music industry vets criticized the lack of accessibility to such a culturally significant work, exacerbated by Shkreli’s decision to keep it as a rare collectible without plans for a public release.

    Following his conviction, the album was seized by the government (along with his other assets) and ultimately sold in 2021 as part of the forfeiture process. The sale of the album completes Shkreli’s payment of the forfeiture, and the buyer and price remain confidential.

    Obinwanne Okeke

    Obinwanne Okeke, a Nigerian-born entrepreneur, was revered for his achievements in construction, agriculture, and real estate. But in 2021, he was sentenced to 10 years in prison for his role in a computer-based fraud scheme that caused approximately $11 million in losses to his victims.

    Okeke operated a group of companies — including the Invictus Group, which was the center of Okeke’s 2016 “30 Under 30” title — but ultimately conducted various computer-based frauds from 2015 to 2019.

    Okeke’s scheme involved obtaining credentials from hundreds of victims and engaging in “email compromise.” Through fraudulent wire transfer requests and fake invoices, Okeke and his conspirators transferred nearly $11 million overseas. Okeke also carried out other forms of cyber fraud, including phishing emails and creating fraudulent web pages. Okeke is serving his sentence and will be released in 2028.

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    Entrepreneur Staff

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  • FTC calls on federal court to hold ‘pharma bro’ Martin Shkreli in contempt | CNN Business

    FTC calls on federal court to hold ‘pharma bro’ Martin Shkreli in contempt | CNN Business

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    Washington
    CNN
     — 

    The Federal Trade Commission on Friday called for a federal court to hold “Pharma Bro” Martin Shkreli in contempt after Shkreli allegedly flouted a recent FTC investigation into his business dealings and failed to make a $64.6 million payment he owed for his prior wrongdoings.

    The FTC’s contempt motion follows what the agency described as its an unsuccessful attempt to verify whether Shkreli has violated a court order barring him from ever working in the pharmaceutical industry again.

    Brianne Murphy, an attorney for Shkreli, called the issue with the FTC a misunderstanding that “can get resolved relatively quickly once we get additional information and context to them.” Murphy added that Shkreli’s new business does not run afoul of the court order because the new company “is a software company, rather than a drug company.”

    Shkreli was released from federal prison last year after serving a shortened sentence. He was convicted of securities fraud in 2017 for mismanaging two investments funds.

    Shkreli also infamously raised prices for the life-saving medication Daraprim by 4,000% while he was head of Turing Pharmaceuticals. His conduct earned him the title of “most hated man in America” by multiple publications. More recently, he was the subject a 134-page ruling in 2022 by the US District Court for the Southern District of New York that banned him for life from participating in the pharmaceutical industry, as part of a separate FTC antitrust case against him.

    That legally binding order triggered a new investigation into Shkreli’s activities in October, when public reports indicated he had co-founded a new “Web3 drug discovery software platform” known as Druglike, Inc.

    When the FTC emailed Shkreli to get documents from him and to schedule an interview about the matter, Shkreli repeatedly missed deadlines and allegedly slow-walked his responses, according to an FTC court filing Friday.

    “Shkreli has not attempted—much less ‘diligently,’ as Second Circuit law requires—to comply with the Order in a reasonable manner,” the filing said.

    The FTC also said Shkreli had been ordered to make his multimillion-dollar payment — representing a refund of his ill-gotten Daraprim gains — by March 6, 2022. But in fact, the FTC said, “to date he has paid nothing toward the judgment, and has made no efforts to comply with this provision of the Order.”

    As far as his involvement with Druglike, the FTC added: “Shkreli’s noncompliance is also clear and unambiguous: Shkreli has not submitted a supplemental Compliance Report, provided access to relevant documents, or made himself available for an interview.”

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  • FTC says pharma no to

    FTC says pharma no to

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    Martin Shkreli charged with price-fixing


    FTC charges “Pharma Bro” Martin Shkreli with fixing price of life-saving drug

    01:16

    The Federal Trade Commission on Friday said convicted fraudster Martin Shkreli should be held in contempt of court for launching a new drug company after he was banned from the pharmaceutical industry for life. 

    An earlier court order prohibited Shkreli “from directly or indirectly participating in any manner in the pharmaceutical industry” and ordered him to pay up to $65 million in monetary relief. Shkreli in 2018 was sentenced to seven years in prison for securities fraud. He served four years and was released from Pennsylvania’s Allenwood Low Federal Correctional Institution in May of 2022.

    The FTC asked the United District Court for the Southern District of New York to find Shkreli in civil contempt for failing to satisfy the monetary judgment and for forming a new company, called Druglike, described as “a platform for democratizing the access, costs and rewards of early-stage drug discovery.”

    The agency also said Shkreli has not complied with requests to turn over information and make himself available for interviews related to its probe into Druglike. 

    “We hope to resolve this misunderstanding with the FTC quickly,” Brianne Murphy, an attorney for Shkreli, told CBS MoneyWatch. “We believe Druglike does not violate Judge Cote’s order as it is a software company rather than a drug company.”

    Martin Shkreli
    Former pharmaceutical executive Martin Shkreli seen August 4, 2017, in the Brooklyn borough of New York City.

    Drew Angerer / Getty Images


    Shkreli, once dubbed the “Pharma Bro,” described Druglike in a July 25, 2022, press release as a “Web3 drug discovery software platform.” The technology will speed the development of new drugs and benefit “underserved” communities with rare diseases or in developing markets, he said. 

    Shkreli drew a barrage of criticism in 2015 when he hiked the cost of AIDS drug Daraprim by 5,000% during his tenure as chief executive of Turing Pharmaceuticals. But his legal woes stemmed from a 2018 conviction for defrauding investors in two hedge funds.

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  • FTC asks judge to hold ‘pharma bro’ Martin Shkreli in contempt of court for forming new drug firm

    FTC asks judge to hold ‘pharma bro’ Martin Shkreli in contempt of court for forming new drug firm

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    Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, pauses while speak to members of the media with his attorney Benjamin Brafman, right, outside federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017.

    Peter Foley | Bloomberg | Getty Images

    The Federal Trade Commission on Friday asked that notorious “pharma bro” Martin Shkreli be held in contempt of court for forming a new drug company in violation of a judge’s ban on the convicted fraudster from working in the pharmaceuticals industry.

    Shkreli, who was released from prison last year, in February was banned “for life from directly or indirectly
    participating in any manner in the pharmaceutical industry” as a result of the FTC’s antitrust lawsuit against him and a prior drug company that he founded.

    That order stemmed from Manhattan federal court Judge Denise Cote’s ruling that Shkreli oversaw an illegal scheme to maintain a monopoly on the life-saving drug Daraprim, which continued even as he sat in prison for his conviction in an unrelated securities fraud case.

    In its court filing Friday, the FTC noted that Shkreli in July announced the formation of a new company, Druglike, “that appears to be involved in the drug industry.”

    The agency said that action, as well as Shkreli’s failure to pay his nearly $25 million share of a $64.6 million judgment he owes in the lawsuit, suggest that he is violating the court’s orders in the case.

    The FTC and a group of states that sued Shkreli said in the filing he has failed to comply with their requests to give them documents and submit to an interview as part of their probe into whether his involvement with Druglink violates the February 2022 court order banning him from the industry.

    “Martin Shkreli’s failure to comply with the court’s order demonstrates a clear disregard for the law,” said Holly Vedova, director of the FTC’s Bureau of Competition, in a statement.

    “The FTC will not hesitate to deploy the full scope of its authorities to enable a comprehensive investigation into any potential misconduct,” Vedova said.

    Benjamin Brafman, a lawyer for Shkreli, did not immediately reply to a request for comment.

    This is breaking news. Please check back for updates.

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  • Martin Shkreli Offers Prison Tips to Sam Bankman-Fried

    Martin Shkreli Offers Prison Tips to Sam Bankman-Fried

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    Martin Shkreli a.k.a. “Pharma Bro,” has some advice from one ex-con to one accused fraudster.


    Spencer Platt/Michael M. Santiago/Getty Images

    Shkreli – who gained infamy in 2015 as a pharmaceuticals CEO that hiked the price of a lifesaving drug from $13 to $750 and was later found guilty of securities fraud — offered some slammer survival skills to now-disgraced former FTX CEO Sam Bankman-Fried on crypto journalist Laura Shin’s, “Unchained” podcast.

    Ahead of Bankman-Fried’s looming legal battle and possible incarceration, Shkreli said he should prepare for prison life and “reinvent” himself if he wants to make it behind bars.

    “Sam is going to have a lot of issues because he is a bit of an effeminate guy and his demeanor — some people say autistic sort of sense, or sensibility — is not something that goes over well in prison,” Shkreli said.

    Shkreli was sentenced to prison in 2017 and released this past May after serving five years of a seven-year sentence.

    Related: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

    Bankman-Fried, a.k.a. SBF, was arrested in the Bahamas earlier this month on several criminal fraud charges. He could face up to 115 years in prison after allegedly stealing billions in customer funds in a Ponzi Scheme between crypto exchange FTX and Alameda Research crypto trading firm. After being extradited to the U.S., SBF was released on a $250 million bond and is living with his parents in California as he awaits trial.

    Shkreli’s other advice includes saying SBF should shave his head, deepen his voice, and brush up on rap music, gangs, and “criminal culture.”

    While Shkreli said these changes “could save your life” on the inside, he also said the former crypto entrepreneur should hide his Ivy League education and privileged roots.

    “He should probably start to reinvent his background and history because the rich white kid from a good neighborhood — that story doesn’t sound great,” Shkreli said.

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    Sam Silverman

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