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Big Pharma Exec/League of Legends Team Chairman Arrested on Fraud Charges [UPDATE]

Martin Shkreli no longer CEO of Turing Pharmaceutical and drops out of League of Legends team position, sources says.

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[UPDATE] Shkreli is no longer the CEO of Turing Pharmaceutical, the company announced in a press release. Additionally, sources have told Polygon that he's also left his post as chairman of League of Legends professional squad, Team Imagine. He was released after posting a $5 million bond.

The original story is below.

Bloomberg and The New York Times are reporting that Martin Shkreli, who made global headlines in September when his pharmaceutical company raised the price of a life-saving drug by more than 5,000 percent, was arrested this morning in his Manhattan home on securities fraud charges. Shkreli is also the chairman of Team Imagine, a professional League of Legends team. On Twitter, Shkreli calls himself a "gaming enthusiast."

No Caption Provided

The 32-year-old's arrest today, however, does not pertain to price-gouging. From the Bloomberg report:

"Prosecutors in Brooklyn charged him with illegally taking stock from Retrophin Inc., a biotechnology firm he started in 2011, and using it to pay off debts from unrelated business dealings," the report says. "Federal prosecutors accused Shkreli of engaging in a complicated shell game after his defunct hedge fund, MSMB Capital Management, lost millions. He is alleged to have made secret payoffs and set up sham consulting arrangements."

Shkreli is the CEO of Turing Pharmaceutical. These new charges run alongside a lawsuit he's facing from Retrophin, another pharmaceutical company that ousted him as CEO in 2014, Bloomberg reports.

A New York-based lawyer was also arrested Thursday morning and is accused of conspiring with Shkreli, according to the report. More details on the case are expected to be divulged during a press conference later today.

Shkreli started the League of Legends team Odyssey in April; it merged with Team Imagine in August. We have contacted representatives for the team and will update this story with anything we hear back.

Shkreli found himself in hot water after his company acquired the 62-year-old drug Daraprim in August and later raised the price from $13.50 per tablet to $750, an increase of over 5,000 percent. He told GameSpot sister site CBS News back in September that the price increase is "not excessive at all."

In other news about Shkreli, he recently paid millions for an ultra-rare Wu-Tang Clang album and told Bloomberg News that he hasn't listened to it yet.

Got a news tip or want to contact us directly? Email news@gamespot.com

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arcangelgold

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Well I guess sometimes karma just comes back to bite selfish people in the butt who withhold life saving treatment from people who can't afford their drug. Price gouging is already illegal it's ridiculous he wasn't charged with that first. I hope it costs all the money he has made to fight this legal battle and I hope he falls ill in jail and can't afford any treatment. Perhaps then justice will be served.

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itchyflop

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What a c~nt, and the government are no better either.

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Gwarpup

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I'm shorting Marty's stock KBIO right now from the 20s.. It's halted but when it gets freed up it will drop to so fast maxing out my gains. Come to Precious!

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dladz

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This guy is a rat, period.

What he's done is beyond evil, i'm surprised he's still alive.

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javalino

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WTF ??? DRUGSPOT NOW ???

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Zombrex

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Never trust anyone who looks like Smeagol transitioning into Gollum.

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itchyflop

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@Zombrex: ahahahaha :)

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omotih

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https://www.youtube.com/watch?v=HzeZhCt5PVA

since he likes wu-tang clan

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AutumnVarela

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You guys sure are angry. If you're so upset with his price gouging, please advocate on behalf of changes to our pharmaceutical industry and the regulation of it. He is simply acting as a rational agent in a system which encourages this kind of abuse. It's not his burden to be a good person and ignore exploits in a system, it's the burden of the government to eliminate the exploit.

Demonizing people who abuse market failures may feel good, but it serves no purpose. There is only one way to fix market failures and that is through regulation by the government. I know some people automatically may reject "regulation" but think of it in the way you would think of monopolies. I don't think I know anyone who is against antitrust laws.

Don't focus on this one man. Redirect your anger towards the system in place that did nothing to prevent his abuse.

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arcangelgold

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@autumnvarela: Uh actually price gouging is and always has been illegal so I blame the government for not having arrested him early on that charge. They have the authority to but chose not to. So actually he was breaking the law already, however I'm sure a better definition of the law needs to be made to define how much equates to price gouging. This is why I don't agree with patents on anything at all but especially medicines. Unfortunately it is a part of our Constitution.

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dladz

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@autumnvarela: So you think that what he is done (although legal) is ethically correct?? Please do tell me more.

What this rat did is in no way shape or form a good or ethical thing, he has put cancer treatment out of peoples reach for his own benefit, what a bast**d and you condone that kind of thing do you? Absolute idiot that you are.

You can join him in the flogging that i'm sure is round the corner if you like, you can call it your duty as a fellow citizen if you like.

Degenerate fool.

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Zombrex

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@autumnvarela: I know a lot of conservatives (including me) are against an excess of regulation, but in this case, you're right. This needs to be regulated because we can't simply rely on good will. A lot of people I know were against any sort of regulation on ISPs but that has served to be quite helpful. If regulation is necessary to stop exploitation then so be it.

This guy is still a douche though.

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deactivated-578f2053b4a13

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@autumnvarela: youre right. But he's still a dirtbag.

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PtsdGamer1

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Edited By PtsdGamer1

Something just screams government propaganda to me. He makes the news, everybody hates him, then they take him down, sounds like Hollywood. Somethings not right. Is this the government trying to quell concerns that corporations run it? He pissed off the wrong people that's for sure, when they take down an oligarch, they're taking down one of their own. Can't put my finger on it.

Some sort of distraction from the real drug cartels (Big Pharm), giving people the belief they police the crooks. He would still be free with the rest of the scum, if he didn't make the news and make the most powerful people in America look bad. Bye, bye.

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winnazdaluza

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Edited By winnazdaluza

@ptsdgamer1: he hasn;t been taken down yet, at least not for raising the price of the drug astronomically, he could be arrested today but that price of the drug will still stay where it is.I will rejoice when it comes down to where it was before

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Sp0ilzbury

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@ptsdgamer1: This is just a ruse to prop up socialized medicine in the media, after the colossal failure that is obamacare.

He's not being punished for speaking out, he's just the fall guy, either he's getting a huge payoff when this is over, or he's been threatened into taking the rap.

"see this is why the government should be in charge, so we keep more things like this from happening." This will be the rallying cry once the mainstream media decides to take notice.

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Sketchy_Llama

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@ptsdgamer1: What? All I'm going to say is look at the time frame from when he left Turing Pharmaceuticals to when he got busted. Now go and look a what the time frame from when they started an investigation into someone and then busted them for their ponzi schemes. Of course him shining the light on himself is going to speed up an investigation when you see him getting ready to do almost the exact same thing to a new company. And of course they'll want to do it when it can score them some more PR the funny thing is Shkreli did it to himself by being an arrogant douchebag about the shit he was doing with the AIDS/Cancer drug. What you think the Government of trying to capitalize off of someone else being the asshole? What pisses me off about the article though is his price gouging of the drug has absolutely nothing to do with his arrest.

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omotih

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Edited By omotih

@ptsdgamer1: u can never be sure ... like Donald Trump is maybe just a puppet to mobilze the masses to vote, when he gets shafted they have no choice as to elect witch ever inner-faction rival is left ... like they know they can hardly win against the liberal mobilisation from groups of imigrants, 'open.minded.people' and feminist activists that is going to happen around Hilary Clinton, calling out Angela Merkel one of the most importent persons of our time just helps in this matter ... regardless of all this, the real political battle is happening between a few select Family.Dynasties like the Clinton or the Bush Clans, while the former is heavily undermined and in control by the 'scientology.movement', the later is powered by more traditional Lobby Groups like the oil and weapon industry ... (how u like that ^^)

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Heqteur

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@ptsdgamer1: well, if anything good is a conspiracy...

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GunsSlashRoses

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From the very first interview, even before he spoke, I knew exactly what kind of person this guy is. He positively radiates slimeyness. And the thing with the life prolonging pill was disgusting, he should of been shot for it.

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cejay0813

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@GunsSlashRoses: Funny they got Al Capone in a similar fashion. Got arrested on nothing pertaining to his horrid crimes

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WindyRectum

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Update : After posting bond Shkreli flew to Mexico , where he now sleeping in a pool full of hundred dollar bills

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PtsdGamer1

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@windyrectum: The justice system is set up so the rich can get of with payment. You're not far from the truth, though I think you're joking.

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Otterbee

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Edited By Otterbee

I'm having trouble deciding who wins "Biggest Tool of the Year" award...this guy, or Donald Trump. Shkreli is one of the most arrogant people I've ever seen. I knew this guy was no good the first time I'd seen him. Just listening to his interviews after the Turing Pharma thing, I knew that he was going to be going down HARD for some reason or another.

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PtsdGamer1

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@otterbee: Trump is a dangerous racist demigod, he wins it hands down. Trying to distract and dived people, trying to take us back to the dark ages.

ANYBODY voting for Trump has a very low IQ and is ignorant for it.

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Heqteur

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Edited By Heqteur

@ptsdgamer1: you're an idiot if you actually believe democracy is about voting for "the right candidate". You'Re also a total douchebag if you'Re trying to make people with a different opinion than you feel like ignorant. Anybody calling people low IQ based on their political allegiance should be forbidden from voting and should learn to open their mind to more than what the medias is telling them to think.

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jcheng9416

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Edited By jcheng9416

@heqteur: I don't think the people that agree with Donald Trump has low IQ but they lack of common sense, is funny how he said Mexican are rapist, drug dealers and criminal, then say not all but some, or saying I have a great memory but saying I don't remember it was years ago. Why say all that nonsense if he is not even sure. It is like saying I killed this guy but I don't remember if I killed him.

Anyway, on the topic This guy took advantage of people misery to make himself rich.

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mkeezay22

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@heqteur: No, if you're voting for Trump you probably shouldn't procreate either.

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youngsexynerd

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Lol this is the kind of dude that is about to snitch on EVERY SINGLE person he was ever "involved" with.... A lot of people are probably freaking the hell out right now :)

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Wilson_Diabetes

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I heard that he listened to that Wu-Tang Klan's album just once and got arrested for it.

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jcheng9416

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@wilson_diabetes: no he said he is not going to play it, reason - to increase the value for the years to come

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Otterbee

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@wilson_diabetes: It's shameful that this is the guy that actually won the auction on it. Such a waste. $2mill for that. I wonder if there's a clause that will allow Wu-Tang to get it back...and not have to reimburse him. ROFL

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Tr4newreck

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plenty of scumbags like this that reside in powerful corporations, protected by lobbies, and in the government... they do shit like this every year, but nobody talks about them.

e.g. you can be damn sure there is impropriety between 'dick cheney' and 'Halliburton' when he was in office, but nobody batted an eyelash...

he's ultimately guilty of not being well-connected enough to avoid investigations like this

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PtsdGamer1

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Edited By PtsdGamer1

@tr4newreck:

He is definitely an oligarch, that's the thing that's bothering me the most. He is one of them, they took one of their own down. He pissed off the wrong people, they don't like being in the spotlight, might spark a revolution, they'll lock him up or change his behavior.

BUT, something stinks about this, it's to clean and life just doesn't work that way. It screams government propaganda , fool the sheep into believing they police corporate crime? I dunno.

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mkeezay22

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Edited By mkeezay22

@ptsdgamer1: Indeed, the right rich people don't go to jail, this year a Saudi prince in California r4p3d a few girls and wasn't even arrested, big bankers orchestrate collapses of the market that lead people to suicide and get away with it, this guy wouldn't have even got arrested if they weren't unhappy with him, I'm sure there is much more to the story.

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TheSpicyChiken

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@tr4newreck: ^this

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Trev786

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I hope the judge sets an "exapmle" with this f*cking scumbag, and give him the maximum sentence

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Tanares

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Now this ladies and gentlemen is what we call GREAT news. not to be confused with good news, that while good provides no universal benefit through karma. This is GREAT news. Now all they gotta do is find Ethan Couch before the new year to make this a GREAT year...

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JamesGoblin

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The pill guy? I knew LoL was toxic, but...=)

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hunglejut

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I did not know he was a PC gamer. That it is League of Legends does not suprise me for some reason.

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HughTheHand88

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@hunglejut: Pendragon, the founder of LoL is a scumbag, that's why you make the association.

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Dante-xero

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Gamespot, your prime source of gaming news!.... oh wait...

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Tanares

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Edited By Tanares

@Dante-xero: You have to forgive them for this one. That guy was the worst of the worst. Raised a pill cost used by HIV and cancer patients by 7000% in the name of research, promised a price dip after.. meanwhile another company comes along and shows it can be made for $.99 a pill vs the $18 this guy was charging BEFORE the price increase!

That's right this guy was selling the then-only pill needed for people with immune deficiencies $18 a pill before increasing that price by 7000% to over $770 a pill when it could have been made for $.99 and still had been PROFITIBLE.

Martin Shkreli is the worst kind of asshole, so much so even LoL seems like berries and cream in comparison.

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BravoOneActual

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One could cut him down and spend a life time counting the rings of douche.

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justing16

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what an absolute dick***d!!!!!! karma

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DRAKE08

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This guy is a **** up A-whole.

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