Turing Replaces Martin Shkreli as CEO

In this courtroom sketch, entrepreneur and former hedge fund manager Martin Shkreli, second from left, appears in court for his arraignment on fraud charges, Thursday, Dec. 17, 2015, in NY.

Martin Shkreli, who was in limelight for price gouging vital drugs was arrested on early morning of Thursday, was released the same day on a $5 million bond.

Turing’s chairman Ron Tilles will step up as interim chief executive.

U.S. prosecutors said Shkreli “essentially ran his companies like a Ponzi scheme” and presided over “a web of lies and deceit”. Also charged in the alleged scheme is Evan Greebel, who served as an attorney for one of Shkreli’s past companies.

Incidentally, Buzzfeed is reporting that Shkreli founded a hedge fund MSMB Capital, and recruited investors by boasting the fund had $35 million in assets.

Martin Shkreli has resigned as chief executive of Turing Pharmaceuticals following his arrest on fraud charges.

Mr Shkreli attracted widespread attention this fall after Turing bought the rights and raised the price more than 50-fold for a half-century-old drug that treats a parasitic infection that can be life threatening in HIV patients, pregnant women and others with compromised immune systems.

Shkreli, the 32-year-old Wall Street wunderkind described by some as “the most hated man in America”, has been known for two things in recent weeks. In the meantime Shkreli is out of prison after posting $5 million bail.

At first, he seemed to repent, promising to lower the price.

In an odd foreshadowing of events, a video posted last night on his YouTube page shows Shkreli answering a phone call during a live stream in which a caller at 1:22:10 identifies himself as a “special agent” before Shkreli appears to cut him off and hangs up.

Through his press relations firm, Shkreli tells reporters he is confident he will be cleared on all charges.

“We remain committed to ensuring that all patients have ready and affordable access to Daraprim and Vecamyl”, the company said in its statement.

Shkreli is also the CEO of KaloBios, a publicly traded company that saw its shares drop 53 percent yesterday.

Shkreli was charged with securities fraud and conspiracy. “Thanks for the support”.

Nasdaq has placed KaloBios’ stock on a trading halt until the company provides more information.