Connect with us

Tech

Wall Street Crime and Punishment: Martin Shkreli, the Self-Destructive Pharma Bro

Published

on

Does crime pay?
Wall Street Crime and Punishment is a weekly series by Benzinga’s Phil Hall chronicling the bankers, brokers and financial ne’er-do-wells whose ambition and greed take them in the wrong direction.
His former girlfriend acknowledged that he is “good at getting under people’s skin.” The judge who denied his most recent probation request accused him of displaying “delusional self-aggrandizing behavior.” His cellmates at the prison where he is currently incarcerated reportedly nicknamed him “a**h***.”
Tabloid journalists routinely labeled him “the most hated man in America” for his decision to jack up the price of a prescription drug used in treating a rare disease. He has also been derisively dubbed “Pharma Bro” by the same tabloid bunch for his cavalier behavior in defending his actions.
All of this seems to give Martin Shkreli more cred than he deserves. In reality, he was an incompetent businessman who stupidly put himself into a media spotlight that magnified his vices. In his mind, he was giving the public the ultimate example of What-You-See-Is-What-You-Get, but that proved to be his undoing because too many people didn’t like what they saw.
A Sketchy Background: Martin Shkreli was born March 17, 1983, at Coney Island Hospital in Brooklyn, New York. His parents were Albanian immigrants who worked as janitors — and they kept those jobs even after their son had the financial means to support them.
The earliest controversy surrounding Shkreli dates back to his high school years. He attended Hunter College High School in Manhattan but it is unclear whether he graduated on schedule, graduated two years ahead of schedule, dropped out, or was kicked out. Nonetheless, he had some fondness for his alma mater and in March 2015, he donated $1 million, the largest endowment in the school’s history.
Shkreli graduated from Manhattan’s Baruch College in 2005 with a business degree. He wasn’t a sterling student, but that’s not where his focus was aimed. Instead, he gained a college internship at Cramer Berkowitz, the hedge fund run by Jim Cramer.
Shkreli told a Vanity Fair interviewer that he “weaseled” his way into the firm and began in the mailroom before working his way up to an associate’s role. As with his high school experience, stories vary on how he fit into Cramer Berkowitz, with some people claiming he reported to Cramer while the CNBC pundit later insisting he didn’t remember Shkreli and that he “he was no protege.”
Shkreli also had his first run-in with regulators during his Cramer Berkowitz tenure when he advocated short-selling Regeneron Pharmaceuticals Inc (NASDAQ: REGN). After the stock’s price dropped, the U.S. Securities and Exchange Commission conducted a probe of Shkreli but was unable to find any evidence of chicanery in his short-selling recommendation.
Related Link: The complete Wall Street Crime and Punishment series
Hits And Misses: Shkreli left Cramer Berkowitz after graduating from college and briefly worked at Intrepid Capital Management and UBS Wealth Management before starting his own hedge fund, Elea Capital Management, in 2006. That venture went awry when Lehman Brothers sued Shkreli and his hedge fund for failing to pay for a put option. Lehman Brothers won a $2.3 million default judgment against Shkreli and his fund, but the company collapsed in October 2008 before any restitution was made.
Undeterred, Shkreli teamed with childhood friend Marek Biestek to form MSMB Capital Management. The duo specialized in shorting biotech companies and trash-talking these firms in online chat rooms focused on stock trading.
But more bad luck seemed to plague Shkreli’s entrepreneurial pursuits: he made a disastrous short position in 2011 on the obesity drug company Orexigen Therapeutics (NASDAQ: OREX) through an account he held with Merrill Lynch, which cost the company $7 million that he was unable to repay. His handling of the debacle was even …
Full story available on Benzinga.comRead More

Source Here: benzinga.com

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Mereo BioPharma’s Etigilimab/Opdivo Combo Achieves One Complete Response in Cervical Cancer

Published

on

Mereo BioPharma Group plc (NASDAQ: MREO) reported interim data from ACTIVATE Phase 1b/2 study of its anti-TIGIT antibody, etigilimab, in combination with Bristol Myers Squibb Co (NYSE: BMY) Opdivo (nivolumab) in select recurrent advanced/metastatic solid tumors.
As of the cut-off date, one complete response in cervical cancer, one partial response in ovarian cancer, and four …
Full story available on Benzinga.comRead More

Original Article: benzinga.com

Continue Reading

Tech

Canada Plastics Pact Welcomes 15 New Partners

Published

on

OTTAWA, Nov. 30, 2021 (GLOBE NEWSWIRE) — Canada Plastics Pact is excited to be welcoming 15 new Partners following last month’s release of it’s shared action plan to build a circular economy for plastics packaging in Canada. The new Partners announced today include leading consumer goods organizations, provincial and municipal governments, resin producers, recyclers, a bio-based plastics startup, one of Canada’s largest waste management companies, a new non-profit Producer Responsibility Organization and leading non-profit organizations from across the country.
Since the CPP launched in January 2021, the CPP has doubled in size to include 81 leading industry, NGO, and public sector organizations who together account for over a third of the plastics packaging in the market nationally. These Partners are working collaboratively towards ambitious 2025 targets to create a circular economy for plastics packaging in Canada where it stays in the economy and out of the environment. This has included the release of Roadmap to 2025: A shared action plan to build a circular economy for plastics …
Full story available on Benzinga.comRead More

Article: benzinga.com

Continue Reading

Tech

HealthRecon Connect Successfully Completes SOC 1(R) Type 1 Examination

Published

on

DALLAS, Nov. 30, 2021 (GLOBE NEWSWIRE) — HealthRecon Connect, leading revenue cycle management solutions provider to Healthcare Providers based in the US, reaffirmed its commitment to internal security controls by successfully completing the System and Organizational Controls SOC 1(R) Type 1 examination. The report independently audited by Stakes CPA, LLC, validates that HealthRecon’s infrastructure, controls, policies, and procedures meet and/or exceeded the SOC 1(R) Type 1 criteria as of July 1, …
Full story available on Benzinga.comRead More

Source Here: benzinga.com

Continue Reading

Trending

BaypointNews.com