Four years before being arrested on securities fraud charges, pharma bad boy Martin Shkreli and his hedge fund were suspected of faking a takeover bid for a then-publicly traded health-care company, SeraCare — suspicions that were made known to federal authorities back in 2012, according to a shareholder of that company.
The curious facts surrounding Shkreli's purported effort to buy SeraCare in 2011 echoes claims in the new indictment against the former hedge fund manager, which allege that he repeatedly misrepresented his fund's performance and the size of its assets under management in an attempt to make it appear the fund was much bigger than it actually was.
Shkreli was arrested Thursday in a probe of his actions involving his hedge fund MSMB Capital Management and as CEO of biopharmaceutical company Retrophin.
In the SeraCare matter, Shkreli made an offer in June 2011 to buy the company for $4.25 a share. "We strongly believe that the Board of Directors should find our offer to be fair and in the best interests of the Company's stockholders," Shkreli said in a letter sent to SeraCare's board.
At the time Shkreli claimed he wanted to buy SeraCare, his hedge fund was actually suffering steep losses, Thursday's unsealed indictment alleges.