On December 17, Martin Shkreli, the founder and managing member of hedge funds MSMB Capital Management LP and MSMB Healthcare Management LP and former CEO of Retrophin Inc., a biopharmaceutical company, was charged with securities fraud, securities fraud conspiracy, and wire fraud conspiracy for orchestrating three interrelated schemes: schemes to defraud investors in MSMB Capital and MSMB Healthcare and a scheme to misappropriate Retrophin’s assets. Shkreli was charged with lying to investors about key facts of the funds he managed, concealing the funds’ losses, and using assets from Retrophin to pay off MSMB investors, ultimately leading to Retrophin and its investors suffering a loss in excess of $11 million. United States v. Shkreli, 15-cr-637 (E.D.N.Y.) DOJ Press Release
