One simple graphic that explains why the FBI arrested Martin Shkreli
Martin Shkreli is best known, and hated, for being the CEO of a pharmaceutical company that increased the price of a lifesaving drug from $13.50 to $750. He's also hated for spending millions to own the only existing copy of the latest Wu-Tang Clan album.
But those things have little to do with why he was arrested on Thursday.
The chart above tries to parse out the difference, but the short of it is: His hedge fund company, MSMB Capital Management, was doing poorly, so he allegedly took stocks illegally from his former company, Retrophin, to pay off those debts. He was ousted from Retrophin, a biotech company, because the board had "serious concerns" about his conduct.
Go deeper:
- Martin Shkreli, "most hated man in America" for drug price hikes, has been arrested
- He raised drug prices 5,500 percent — because in America, he can
- How the wunderkind became American's "most hated man"
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