Activists protest Martin Shkreli outside Turing Pharmaceuticals headquarters on October 1.
The FBI arrested Martin Shkreli, the CEO of Turing Pharmaceuticals, in a securities fraud investigation related to his time leading the hedge fund MSMB Capital Management, Reuters reports.
Shkreli and Turing earned the ire of AIDS activists this fall when he raised the price of the 62-year-old anti-parasitic drug Daraprim used to treat people with compromised immune systems. The pricetag shot from $13.50 to $750 per pill. (Shkreli is also the CEO of KaloBios Pharmaceuticals.)
But the arrest this week was related to a time before the Turing controversy, to when Shkreli was heading biopharmaceutical company Retrophin Inc. as well as the hedge fund MSMB Capital Management.
Retrophin’s legal counsel Evan Greebel was also arrested.
The indictment claims that Shkreli made $3 million in investments after sending false information to MSMB investors, telling them the fund was profitable when in fact it had ceased trading. Among other charges, Shkreli and Greebel are also accused of misappropriating $11 million in Retrophin assets through phony consulting deals.
Reuters reports that Retrophin filed a separate but similar lawsuit against Shkreli in August for $65 million.
Other investigations into Turing’s drug pricing are ongoing. For more about that, click here.