“Wolf Of Pharma Street” Yuppie Charged With Fraud
Pharma Bro Charged With Fraud; Hated For Drug Pricing
Maybe you were skimming the news this week and saw all those headlines about the “pharma bro” that everybody is loving to hate. He’s Martin Shkreli, head honcho in the pharmaceutical industry, and he was arrested just a few days ago for fraud charges. Apparently he used hedge funds and one of his old businesses to scheme away a bunch of money, or something.
The wackiest part about Shkreli’s arrest is that people aren’t talking about the fraud charges — people hate him for stuff he’s done that technically isn’t illegal: namely, raising the prices of needful drugs to literally insane levels. Like the one used for HIV and Cancer patients that used to cost $13.50 per pill until Shkreli raised it to $750. Per pill.
Money Must Be Funny In A Rich Man’s World
Never has the ABBA song “Money, Money, Money” resonated with me so well. Because based on Martin Shkreli’s self-defense in the face of a nationwide backlash to his drug pricing, the guy really does think money is kind of funny. Or he just doesn’t care. Or both!
Either way, you might be asking yourself why he got away with the corrupt drug prices, since that’s not what he’s facing charges for. The answer is that he’s just doing something that, sadly, a LOT of pharma companies are doing these days.
Using a loophole in America’s healthcare system, drug companies like Shkreli’s Turing Pharmaceuticals are legally allowed to buy older, cheaper drugs and amp up their pricetags. Businesses just have to be willing to test the market’s limits. Daraprim, the drug Shkreli started selling for $750 per pill, has apparently been around for decades.
But business is business, y’know? At least that’s how Shkreli feels:
“I think healthcare prices are inelastic. I could have raised it higher and made more profits for our shareholders.”
Because that’s what everybody is concerned about — whether or not the shareholders’ profits are increasing. Cough.
What This Pharma “Bro” Teaches Us:
If nothing else, Americans can be thankful for Shkreli’s unmasking of Wall Street (more specifically, Pharma Street). And even though the guy isn’t getting punished for what seems to be his worst crimes, the fraud charges that nobody is talking about are important too because they demonstrate the scope of his corruption. Taking it one step further, Shkreli’s reprehensible business tactics reveal the grand scale of corruption among the wolves of Wall Street.
Shkreli has shown us that hedge-fund fraud and unethical drug pricing are just two methods used by big businesses to get more money at any cost. He has put a blinding spotlight on a very gross problem that people have historically been afraid to talk about: corporate greed.
But maybe that term is too particular — the word we’re looking for is probably just “greed.”
Anyways, Back To The Fraud Charges:
Even though the national conversation about pharma bro is almost unanimously about his egregious drug prices, it’s still important to consider the charges that have actually been raised against him.
New York police officials took him into custody last Thursday after accusations of securities fraud and conspiracy related to hedge-funds and an old pharmaceutical company.
According the allegations, Shkreli ransacked the company’s finances to make up for bad trades that caused losses for his hedge-fund investors. If true, the crimes took place between 2009 and 2014.
So, what’s the fallout? For starters, Shkreli has had to resign from his position as CEO of his Turing pharma company. This could be temporary if the charges are dropped, but if they aren’t, then the crafty young pharma wolf could be looking at a max of 20 years behind bars.
Consequences Of Fraud Crimes
It’s possible to be even more specific with estimates related to Martin Shkreli’s potential penalties. Crimes of fraudulence and conspiracy are taken seriously by across the U.S., even if legislative particulars vary slightly on a state by state basis.
So, we might glean some insight as to what Shkreli’s future is looking like based on Tennessee’s law regarding fraud crimes. One can safely assume that, if convicted, he’ll have a felony charge on his record — probably either Class D or Class C, at least. That means fines proportional to whatever amount Shkreli actually swindled away with his fraud schemes, in addition to the previously mentioned prison sentence.
Fraud Crimes Are Serious:
If you or a loved one has been the victim of a fraud crime, or has been unjustly accused of committing such an act, then the first thing you need to do is seek the help of a seasoned lawyer.
At Turner Law Offices, P.C., our team of attorneys has years of experience working with clients across a wide range of cases related to fraud. The sooner you take action, the better your chances of a satisfactory resolution in the courtroom — so don’t wait to call our offices or go online to set up your Free Initial Consultation. A skilled lawyer is ready and waiting to hear your case and get you on track toward the justice you deserve.
