Martin Shkreli -- best known for attempting to price-gouge a life-saving AIDS drug and later buying Wu-Tang Clan's one-of-a-kind album Once Upon a Time in Shaolin for $2 million -- was arrested Thursday (Dec. 17) morning in New York City on charges of security fraud and "widespread fraudulent conduct."
In the U.S. Securities and Exchange Commission's complaint against Shkreli, provided to Billboard by the SEC, the controversial pharmaceutical CEO/Wu-Tang fan is accused of "misappropriating" more than $1 million from MSMB Capital Management and MSMB Healthcare, two hedge funds Shkreli founded and managed. Both hedge funds, as well as his lawyer Evan Greebel, are defendants in the complaint.
According to the SEC, "Shkreli made material misrepresentations and omissions to investors and prospective investors in MSMB; lied to one of MSMB's executive brokers about MSMB's ability to settle short sales." He's also accused of having "misappropriated funds" from MSMB to the tune of $120,000 between 2009 and 2014.