Fraud

According to Colorado securities regulators, two men have been arrested in unrelated securities fraud cases. Eddie Johnson of Sterling, Colorado was taken into custody after he was indicted on seven counts of securities fraud and four counts of theft. He is accused of soliciting $162,000 and a car valued at $30,000 from people who believed they were investing in manufacturing companies Johnson owned. William Gardner of Englewood, Colorado was arrested on multiple felony securities fraud and theft charges. He is accused of spending more than $730,000 of his clients' money to cover his own expenses and to pay returns to previous clients, according to a grand jury indictment filed by the Colorado Attorney General. According to Colorado Securities Commissioner Gerald Rome, Johnson told investors that his companies — Overland Trailer Manufacturing and Overland Corp. — were under contract with major sporting goods retailers for the production of trailers. However, Rome's office said, the company did not have the promised contracts [...]

Martin Shkreli, the hedge fund manager and drug company CEO who rose to infamy after gouging the price of a life-saving pill from $10.50 to $750, has been charged with securities fraud. The FBI arrested Shkreli at his home in Manhattan. He is being processed at FBI headquarters in New York and is expected to be arraigned today in Federal Court in Brooklyn. Shkreli, the CEO of Turing Pharmaceuticals, is alleged to have illicitly taken stock from a biotech company he founded to pay off debts from unrelated business transactions. Shkreli gained America's ire in September when he increased the cost of Daraprim by 5,000 percent. Daraprim, the common name for the drug pyrimethamine, is the only medication for treating toxoplasmosis, an infection contracted from cat parasites that can cause birth defects. It is also used as a co-treatment for HIV infections, some cancers, and malaria. When asked by an audience member at a healthcare summit what he would do differently if [...]