Executive Martin Shkreli: Controversial Former Pharmaceutical Company

The indictment states that in June of 2011, Paxton was engaged in fraud by the offer for sale of common stock for Servergy. He is accused of not disclosing that he was not personally invested in Servergy and that he received compensation for soliciting investors in the form of 100,000 shares of Servergy stock. He is accused of encouraging people to invest more than $600,000 in Servergy without disclosing he made a commission. (Source)

He transferred funds from WHA to his personal bank account and other accounts he had access and control too. Richard understated the amount of unpaid payroll taxes of WHA and its subsidiaries and by overstating the amount of loans made by him to WHA. As a result the financial statements and records were manipulated. He also directed purchasers of new issued shares to transfer the funds of the shares to accounts under his control. Around $6 million was taken and spent. The market value of WHA and the earnings per share were also inflated and overstated as well. This happened because of Richard falsely giving records to the SEC, WHA shareholders, and perspective new purchasers of stock by understating the real number of outstanding shares in the company’s financial statements. World Health Alternatives lost $41 million in total from all of the fraudulent activity.

The Brooklyn District Attorney’s office, DA Ken Thompson, charged Eric Vainer and his mother Polina Wainer who own a Durable Medical Equipment clinic is also the mastermind along with twenty-three other defendants including nine doctors from different medical clinic across the borough of the Bronx, Brooklyn and Queen with $7 million dollars in Medicaid and Medicare Fraud between October 1, 2012, and September 30, 2014. Moreover,

How strong is the case? It is not definitive given the information available but in reality the truth does not matter. Mounting a defense against the SEC makes little sense for Begelman. Being a civil case, criminal charges are not a consideration. The state is seeking a civil penalty and a repayment of the gains (Securities and Exchange Commission). If Begelman surrenders his profits and pays a penalty of $15K he is able to avoid any admission of wrongdoing (Gehrke-White). Thus, it is pragmatic and financially beneficial (avoid prolonged legal fees) for Begelman to settle and move on regardless of his actual guilt or innocence. The only winner in the case is the State. The SEC effectively extorts $30K from the defendant by

Martin Shkreli a young entrepreneur born in Brooklyn, N.Y., who at in early age skipped several grades in school and received a degree in business from New York’s Baruch College in 2004. Began his first internship at the age of 17 at Cramer Berkowitz & Co, the hedge fund founded by television personality Jim Cramer. In 2006 Martin Shkreli started his own hedge fund through Elea Capital Management. Martin Shkreli has a history of jumping from one employer to the other, such as Elea Capital Management, MSMB Capital Management, and Retrophin which ran out of MSMB. All of these companies have law suits against Martin Shkreli due to allegations of indecently handling of funds. In 2011, he founded the biotech firm Retrophin, with the goal of focusing

In July of 2010, Scott Rothstein was sentenced to 50 years in prison for running a US$1.2 billion

This scheme had over 800 victims within the United States and Canada. Allmendinger used the money that he stole from his victims to buy a multimillion-dollar home, a Lamborghini Spyder, and a diamond ring that was 15-carats. Most of these investors gave them their while life savings and have nothing to show for it. He was convicted on a count of conspiracy on mail fraud, two counts of mail fraud, one count of conspiracy to commit money laundering, on count of securities fraud, and two counts of money laundering. Each account he faced up to twenty years each with the exception of the securities fraud count which is up to a five year sentence in prison. Many of their victims were elderly people who had no idea that they were investing in a fraud scheme. Allmendinger was the vice president and co-founder of A&O and he was very active when it came to the marketing of the life settlement investment products and the day-to-day management of the business ("Founder of A&O Entities Convicted in $100 Million Fraud Scheme | OPA | Department of Justice," n.d.). Allmendinger accomplished this fraud by misrepresentations. He lied about the success of the company, the size of the company, number of employees, office location, use of investors’ funds, and the risk of investing offerings. Allmendinger knew he was in trouble to begin with after he found out he was under

Conrad black is in a company hollinger international he purchased in interest in daily telegraph along with other purchase throughout the following 15 years charge were laid against black for tax evasion and racketeering. In 2007 black was convicted of four of the thirteen charges against him 78 months in prison which he served only 42 he was released in 2012. He was announced guilty and fraud of obstructing justice and was charged with eight counts of mail fraud and wire fraud. His fine was $250,000 in the U.S. and after he got out of prison it went all across america and he also threw a $42,000 birthday for his wife. Black is being sued in $71 million (U.S.) in back taxes. The other people

One of the biggest scam in the entire United States history was noticed by Harry Markpolo and the criminal was Bernie Madoff who was the reason for $50 billion dollar financial fraud. It took very less time to find the fraud for the investigator Markpolo and few hours to demonstrate the procedure scientifically. As being responsible Markpolo reported to SEC (Securities Exchange Commission) in the year 2000 as it is the initial one. After that Markpolo again reported to SEC in between the years of 2000 to 2008 for five times but the higher authorities are repeatedly ignored about the case. Markpolo was initially in May 2000 found that 3 to 7 billion dollars are looted in this Ponzi scam it was increased to 10 to 12 billion dollar

Before discussing Turing Pharmaceuticals, LLC., it is important to fully understand the history of Martin Shkreli’s career and his position at Turing Pharmaceuticals, as they have a causal significance in the development of the scandal.

The Bernie Madoff Ponzi Scheme is a well-known case and is known as one of the biggest Ponzi scheme’s. In summary the scheme occurred for many reasons that I will some up into 3 points; A lack in competency by regulatory agencies, a lack of regulation, and finally a breach in ethics by Bernie Madoff himself. To explain further, the regulatory agencies like the lawyers and SEC are supposed to prevent schemes such as this one from happening but because they lacked the skills to correctly assess the situation, interpreting the number of tips they had received regarding scheme that had been filed, and to act on those in an efficient manner. One of the tips was made by Harry Markopolos in 2000, of who correctly predicted that

Madoff reportedly admitted to investigators that he had lost $50 billion of his investors' money, and pled guilty to 11 felony counts—securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the United States Securities and Exchange Commission (SEC), and theft from an employee benefit plan—on March 12, 2009. While the extent of his fraud is still being uncovered, prosecutors say $170 billion moved through the principal Madoff account over decades, and that before his arrest the firm's statements showed a total of $65 billion in accounts.

Martin Shkreli was the chief executive officer of Turing Pharmaceuticals and raised the price of

As HealthSouth started reviving from the scandal, Scrushy’s problems were only starting. In October of the year 2003 Scrushy faced more than 85 charges, including charges that he falsified accounts at the HealthSouth’s company which lead to $2.7 billion fraud of investors, by reporting conjured

Shkreli and Gibbs are viewed quite differently even though both have done something society would call wrong. In the case of Shkreli, he raised the price on medicine so that it would be almost unobtainable for those that would need it. In the case of Gibbs, he murdered a drug dealer that murdered his wife and daughter. Shkreli is viewed very unfoavorably since although what he did technically did not violate the law, to most people what he did goes against most people's morals, ethics and values. He was essentially profiting by causing the suffering of others when he should be trying to help them. Gibbs is in a different situation in that while he violated the law by committing murder, his reason for committing that action could potentially