Shkreli’s Ex-Compliance Officer Says He Quit Over Dodgy Deals

Martin Shkreli ran his hedge fund and start-up drug company in such a dodgy way that his compliance officer said he quit after less than a year on the job.

Jackson Su worked for Shkreli from January 2012 until December of that year and told a jury at Shkreli’s fraud trial in Brooklyn, New York, that 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.

“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,” Su testified. “That was the last straw.”

Su’s testimony on Friday, along with that of Shkreli’s former analyst who called her ex-boss a “scam artist,” provided some of the most damaging evidence yet against the hedge fund manager and pharmaceutical executive in his two-week-old trial.

Shkreli, 34, is accused of having run a Ponzi-like fraud by taking investors’ money to start Retrophin Inc. and then looting the drug maker of $11 million to pay his hedge fund clients. He’s denied wrongdoing. Shkreli operated the hedge fund and Retrophin from the same office in midtown Manhattan.

Source: BloombergMarkets

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