Markets

Did the Wu-Tang Clan Rat Out Martin Shkreli to SEC?

An image of a person going over a financial report
Credit: Shutterstock photo

How? How does this happen? How does a set of circumstances so perfectly manifest that it creates the perfect feel good Christmas story, this close to Christmas? This truly is a holiday miracle. Martin Shkreli is in the news again.

First we reported on his Turing Pharma jacking up the price of an AIDS drug from $13.50 to $750 overnight. Then we talked about him taking over Kalobios Pharma ( KBIO ) , creating a short squeeze that put one poor sap back $106,000. Then there was the news that our friend Marty purchased the Wu Tang Album "Once Upon a Time in Shaolin" for $2,000,000. Which in true Duesenberg fashion, Marty declared, his plans for the album were, "I'll probably never even hear it. I just thought it would be funny to keep it from people."

After dropping $2 million on the album, Marty found out the hard way that money can't buy real friends. Upon hearing who the buyer was, RZA e-mailed a statement saying, "The sale of Once Upon a Time in Shaolin was agreed upon in May, well before Martin Shkreli's business practices came to light. We decided to give a significant portion of the proceeds to charity." That's cold blooded man. Two million dollars and you still can't get any love.

Turns out the RZA, the GZA, Old Dirty Bastard, Inspectah Deck,Raekwon the Chef, Ugod, Ghostface Killer and the Method Man didn't need the boy wonder's money and they were right about Marty's business practices. This morning, Marty was arrested by the FBI after a federal investigation involving his former hedge fund and a pharmaceutical company he previously headed.

The SEC alleged that Marty "made material misrepresentations and omissions to investors and prospective investors, lied to one of his former fund's executing brokers about the firm's ability to settle short sales he had made, and misappropriated funds. Also, the complaint alleges that once Marty took his former company Retrophin ( RTRX ) public, he fraudulently induced the company to fund settlements with individuals who had claims against Shkreli from their investments in his hedge funds. See kids, it's not all about money and how much you can rip off from people. I know what you're all thinking. Here this greedy little rat, this weasely creature that's rude, obnoxious, pompous, and elitist. He's everything wrong with Wall Street. He's a soulless loser of a human being rivaled only by the ugliness of Scrooge. But you're wrong.

Deep down, this is a scared little boy. Upset at the world for not being able to understand him and show him the love he desperately needs. This holiday season, I want to you reach deep down in your hearts. Think about how painful it would feel to be so hated by the entire world.

This isn't the face of Hitler, this is the son of Albanian and Croatian immigrants who worked as janitors. He grew up in a working-class community in Sheepshead Bay, Brooklyn. As a child, he idolized scientists but was also a music fan. Even today, he has a tendency to fiddle with his hair and squirm in his seat like an adolescent. This isn't some demon out to get you.

This is a tortured soul who needs your love. Let's show him our love by sending him holiday cards at his new address. New York City Department of Correction. 75-20 Astoria Blvd, East Elmhurst, NY. Just one card could be enough to turn his life around. Don't let him down. A small gesture from you could mean the world to a childlike Marty.

I already knew about the Wu Tang, but apparently, the SEC ain't nothing to mess with either.Kalobios shares were hit hard today, losing 50% in pre-market trading before being halted. KBIO has no Zacks Rank but is in an industry that ranks in the Top 34% of our Zacks Industry Rank. The industry includes Zacks Rank #1 (Strong Buy) stocks Amphastar Pharma ( AMPH ) and Mylan ( MYL ) , along with Zacks Rank #2 (Buy) stock Evoke Pharma ( EVOK ) .

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AMPHASTAR PHARM (AMPH): Free Stock Analysis Report

MYLAN NV (MYL): Free Stock Analysis Report

EVOKE PHARMA (EVOK): Free Stock Analysis Report

RETROPHIN INC (RTRX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

EVOK RTRX MYL AMPH

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More