How Martin Shkreli Allegedly Created a ‘Ponzi Scheme’ With Biotech Stocks
Jen Wieczner
Fortune, 17 December 2015
After racking up losses while running hedge fund firm MSMB Capital Management, which made bets against biotech stocks, Shkreli formed a biotech company of his own called Retrophin (RTRX) in 2011. He effectively used the company as his own personal piggybank to pay back his and the MSMB funds’ debts, according to the charges brought by the FBI and a separate SEC complaint.
