Skip to content

Editors

Harry Cassin
Publisher and Editor

Andy Spalding
Senior Editor

Jessica Tillipman
Senior Editor

Bill Steinman
Senior Editor

Richard L. Cassin
Editor at Large

Elizabeth K. Spahn
Editor Emeritus

Cody Worthington
Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Shruti J. Shah
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
Contributing Editor

Eric Carlson
Contributing Editor

Compliance officer quit Shkreli fund, complained to SEC

Martin ShkreliA compliance officer who worked for Martin Shkreli’s investment fund quit after less than a year because of his boss’s questionable practices.

Jackson Su testified last week to a federal jury at Shkreli’s fraud trial in Brooklyn, New York.

Su worked for Shkreli’s fund — MSMB Capital — from January 2012 until December of that year.

But “he got so fed up watching his boss execute questionable and unethical transactions that he quit and complained to the U.S. Securities and Exchange Commission,” Bloomberg said.

Su, 42, testified Friday that the “last day I was there, Martin took $10,000 of what was left — there was only $20,000 left in the bank account — and he transferred $10,000 to his own personal account. That was the last straw.”

Shkreli, 34, is accused of using investors’ money to start Retrophin Inc. and then looting the drug maker of $11 million to pay his hedge fund clients.

He has denied wrongdoing.

Su said MSMB Capital invested $900,000 in Retrophin but the investment was later reclassified as a loan.

“Shkreli would also drop backdated transactions — sometimes months later — on Su’s desk for approval, according to the testimony,” Bloomberg said.

Su complained to the SEC in May 2012.

The SEC began investigating Shkreli a few months later.

Shkreli was fired from Retrophin in September 2014 and arrested for fraud in December that year.

His fraud trial is continuing.

____

Richard L. Cassin is the publisher and editor of the FCPA Blog.

Share this post

LinkedIn
Facebook
Twitter

Comments are closed for this article!