Infamous Former Pharma CEO Martin Shkreli Sues Investor from Prison

Martin Shkreli, who gained infamy in 2015 for buying the drug Daraprim, an antiparasite that costs pennies to make, and raising its price to $750 per pill, then later doing all sorts of crazy things, is back at it again, this time from prison.

According to CNBC, Shkreli “filed suit in federal court in Brooklyn against a Florida man, accusing him of fraudulently inducing Shkreli into signing a promissory note that has left him owing $420,000 to the man’s father.” Shkreli claims that the man unfairly pressured him into signing the note, and that the note’s usurious interest makes it invalid under New York law. But as Debra Guzov, the attorney for the defendant George Yaffe points out, Shkreli’s claim is “ironic,” because “the note in question was prepared by Martin Shkreli, so he’s complaining about a document that he actually drafted.”

Shkreli is currently serving a seven-year sentence for two counts of securities fraud and one count of conspiracy to commit securities fraud. The FBI accused him of running a Ponzi-like scheme, where he misled investors in his hedge fund, which was crumbling, and then looted a publicly traded company that he ran in order to pay back some of his investors in the hedge fund.

After becoming a villain online for his 2015 appearance on CNBC where he talked about his dramatic price hike for the drug Daraprim, Shkreli basked in his newfound fame. Shkreli would post increasingly strange tweets and videos online, at one point offering $5000 for a strand of Hillary Clinton’s hair, in hopes of one day cloning the politician. Shkreli also won a bid for the sole copy of the Wu Tang Clan album, Once Upon a Time in Shaolin, and leaked a portion of the highly-anticipated Lil Wayne album Tha Carter V, which he obtained on accident by buying the rapper’s former Bugatti.

Shkreli at one point was worth “at least $45 million” according to Fortune. How much of that he has left is unknown. The SEC has barred Shkreli from the securities industry, but he will be eligible for readmission at some point. However, because of his notoriety it is doubtful that he will be able to find anyone that would trust him with their money or to run a business.

To make sure you don’t end up like Shkreli, contact our firm today. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship.

Hamilton & Associates Law Group, P.A provides ongoing corporate and securities counsel to private companies and public companies listed and publicly traded on the Frankfurt Stock Exchange, London Stock Exchange, NASDAQ Stock Market, the NYSE MKT and OTC Markets. For two decades the Firm has served private and public companies and other market participants in SEC reporting requirements, corporate law matters, securities law and going public matters. The firm’s practice areas include, but are not limited to, forensic law and investigations, SEC investigations and SEC defense, corporate law matters, compliance with the Securities Act of 1933 securities offer and sale and registration statement requirements, including Regulation A/ Regulation A+ , private placement offerings under Regulation D including Rule 504 and Rule 506 and Regulation S and PIPE Transactions as well as registration statements on Forms S-1, Form F-1, Form S-8 and Form S-4; compliance with the reporting requirements of the Securities Exchange Act of 1934, including Form 8-A and Form 10 registration statements, reporting on Forms 10-Q, Form 10-K and Form 8-K, Form 6-K and SEC Schedule 14C Information and SEC Schedule 14A Proxy Statements; Regulation A / Regulation A+ offerings; all forms of going public transactions; mergers and acquisitions; applications to and compliance with the corporate governance requirements of national securities exchanges including NASDAQ and NYSE MKT and foreign listings; crowdfunding; corporate; and general contract and business transactions. The firm provides preparation of corporate documents and other transaction documents such as share purchase and exchange agreements, stock purchase agreements, asset purchase agreements and reorganization agreements. The firm prepares the necessary documentation and assists in completing the requirements of federal and state securities laws such as FINRA and DTC for Rule 15c2-11 / Form 211 trading applications, corporate name changes, reverse and forward splits, changes of domicile and other transactions. The firm represents clients in London, Dubai, India, Germany, India, France, Israel, Canada and throughout the U.S.