Actionable news
All posts from Actionable news
Actionable news in BIB: ProShares Ultra Nasdaq Biotechnology,

Prosecutor: Shkreli may be slapped with new charges

There could be mo' charges coming for this pharm bro'.

Pharma bad boy Martin Shkreli soon could be hit with additional criminal charges, federal prosecutors and defense lawyers revealed during a hearing Tuesday morning.

The superseding indictment that prosecutors are seriously considering filing would echo the original pending charges, which accuse Shkreli and his co-defendant, attorney Evan Greebel of looting publicly traded pharmaceuticals company Retrophin, the lead prosecutor in the case disclosed in U.S. District Court in Brooklyn.

Shkreli founded and was CEO of Retrophin before being ousted by the company's board in 2014 over a dispute that is related to allegations in the pending criminal case. The potential new criminal charges could expose Shrekli and Retrophin's former lawyer Greebel to extra prison time if they are convicted.

Assistant U.S. Attorney Winston Paes said the new charges, which would be filed within 30 days, involved alleged securities fraud and a crime related to a February 2013 "PIPE" transaction, or private investment in public equity, in which private investors buy a company's shares outside of public stock exchanges.

A Securities and Exchange Commission complaint filed against Shkreli last year accused him "enriching himself at Retrophin's expense" by using funds raised by Retrophin in a PIPE transaction in February 2013 to make a personal investment in that PIPE "and thereby acquire 180,000 shares worth over $5.3 million today."

The PIPE deal occurred when Retrophin had less than $20,000 in cash in its bank accounts, and "was in dire need of funds" that it sought by making a private offering of shares and warrants, the SEC said.

In apparent reaction to the...