More Charges Of Defrauding Investors Issued Against Pharma CEO Martin Shkreli
NEW YORK (CBSNewYork/AP) -- Federal prosecutors in Brooklyn have filed additional criminal charges against Martin Shkreli, the pharmaceutical executive who separately was heavily criticized for raising the price of a lifesaving malaria medication.
A new indictment filed Friday in U.S. District Court in Brooklyn said Shkreli and his former attorney Evan Greebel schemed to defrauded potential investors of his former drug company Retrophin Inc., based in San Diego.
They said the two allocated company stock to seven employees to conceal Shkreli's ownership of it.
Shkreli previously pleaded not guilty to charges he lost investors' money through bad trades and looted the pharmaceutical company to pay them back.
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Prosecutors allege that after he lost investors' money through bad trades, he looted Retrophin for $11 million to pay back his disgruntled clients.
Shkreli gained notoriety after a drug company he founded, Turing Pharmaceuticals, spent $55 million for the U.S. rights to sell a life-saving medicine called Daraprim and promptly raised the price from $13.50 to $750 per pill.
Shkreli's attorney said the new criminal allegations won't change the "flawed theory'' of the case. Greebel's lawyer had no comment.
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