“essentially ran his companies like a Ponzi scheme, where he used each subsequent company to pay off defrauded investors in the prior company.”
Evan Greebal, Shkreli’s lawyer, was also arrested the same morning on conspiracy charges. The Securities and Exchange Commission is expected to file civil charges similar to those of the federal prosecutors. The report stated:
“With the onslaught of federal charges and looming regulatory actions, Shkreli could be banned from running a public company.”
Many on social media said Shkreli was getting what he deserved. On Twitter, the top hashtag and keyword related to his arrest was #Karma.
Sources: http://www.reuters.com/article/us-usa-crime-shkreli-idUSKBN0U01IM20151217, http://www.nytimes.com/2015/12/12/business/martin-shkrelis-latest-plan-to-sharply-raise-drug-price-prompts-outcry.html?_r=0