Standard News

Hide Advertisement
  • Business
  • Culture
  • News
  • Technology
  • Trending
Site logo
ADVERTISEMENT
ADVERTISEMENT

Ex-drug executive Shkreli hid control of shares, U.S. says

June 3, 2016 | By Reuters
File photo of Shkreli, former CEO of Turing Pharmaceuticals LLC, appearing before a hearing in Washington

By David Ingram

NEW YORK (Reuters) – U.S. prosecutors tacked on an additional criminal charge to their case against former drug executive Martin Shkreli on Friday, alleging that he tried to conceal from investors his control over unrestricted shares in Retrophin Inc <RTRX.O>.

Advertisement

Federal prosecutors in the New York City borough of Brooklyn filed a superseding indictment with eight criminal counts against Shkreli, who last year became a lightning rod for outrage over soaring prescription drug prices. He was initially indicted in December on seven counts.

Shkreli, 33, pleaded not guilty to the earlier indictment and is awaiting a possible trial this year or next.

“The new indictment adds nothing of value to the government’s case that still relies on a flawed theory as to Mr. Shkreli,” his lawyer Benjamin Brafman said in a statement.

According to the new indictment, in 2012 Shkreli and Retrophin’s outside counsel Evan Greebel divided 2 million of the company’s unrestricted shares across seven employees and contractors in such a way as to avoid the reporting requirements of federal securities law.

Shkreli and Greebel also in effect controlled the shares by preventing some of the employees and contractors from selling them but they did not disclose that control to securities regulators, the indictment says.

Greebel, who was charged in the earlier indictment and pleaded not guilty, also faces the additional charge, bringing the number of counts against him to two. A lawyer for him declined to comment.

Last year, Shkreli sparked outrage after another company he ran, Turing Pharmaceuticals, raised the price of the drug Daraprim by more than 5,000 percent to $750 a pill.

(Editing by Chris Reese and Matthew Lewis)

tagreuters.com2016binary_LYNXNPEC521C0-VIEWIMAGE

← Previous Post Next Post →
Advertisement - Continue reading below
Share  On Facebook

EU regulators to decide on Sony’s Michael Jackson deal by Aug. 1

Tropical Storm Colin gains speed, barrels toward Florida

District of Columbia contestant named Miss USA

Director wants audience to shut up for a bit after seeing Holocaust film

Ex-U.S. defense brass form gun control group for veterans

Juliette Binoche urges Europe to welcome refugees, respect women

Obama says transgender bathroom directive based on law

Muslim teen sues Texas school district after arrest over homemade clock

Eisenhower family lifts opposition to Ike memorial in Washington

Lockheed wins $424 million contract for radar emitter simulation products: Pentagon

load more Loading posts...

sidebar

ADVERTISEMENT
ADVERTISEMENT

sidebar-alt

  • About Us
  • Imprint
  • Contact Us
  • Terms of Service
  • Privacy Policy