The founder and former CEO of biotech, Retrophin Inc (NASDAQ:RTRX), is facing new charges of misconduct. Martin Shkreli founded the company but was recently fired when another set of accusations were lodged at him. Amazingly the company’s shares were up on the news that the former boss was under federal criminal investigation. The accusations focus around his dealings with former shareholders of the company.
Hiding Legal Documents
In February the company released a report on the preliminary findings of an investigation centering on the founders short selling of stock, then abruptly taking a long position. He had convinced officers at the company to hide the legal settlements involved by listing them as consulting agreements and shielding them from public scrutiny. He had paid out millions in cash through Retrophin Inc (NASDAQ:RTRX), along with hundreds of thousands of shares of the company’s stock. The result has been a litany of civil lawsuits launched against him and the company. The company made public recently that it has received a subpoena relating to the criminal investigation. The subpoena is asking for any information that relates to the former CEO’s dealings with a hedge fund called MSMB.
Shkreli recently went on investorshub and posted to the public that he was responsible for no wrong doing and proclaimed his innocence. This was not the first time he has done this. The last time he was under federal investigation he did the same thing. He claimed the charges are false and that every transaction he did was done so with the blessing of the company’s council. He also stated that he had the company’s approval the whole way. He also reminded people that in three years he took Retrophin Inc (NASDAQ:RTRX), from an idea to a $500 million IPO. He is a self-trained biologist that is in his early thirties. He loves the high life and is known for making provocative statements online. His supporters say he is a genius and they are willing to ride this out with him.