July, 09 2012, 01:39pm EDT
For Immediate Release
Contact:
Jordan Libowitz,,jlibowitz@citizensforethics.org,.
CREW Calls for DOJ Invertigation Into Shor-Seller Shkreli
WASHINGTON
Today, Citizens for Responsibility and Ethics in Washington (CREW) asked Preet Bharara, U.S. Attorney for the Southern District of New York, to investigate the short-selling activities of hedge fund manager Martin Shkreli - and possibly others - to determine whether he has illegally manipulated stock prices in the biotechnology and pharmaceutical industries. CREW previously called on the Securities and Exchange Commission to investigate Mr. Shkreli's interactions with the Food and Drug Administration (FDA).
Read the letter to the U.S. Attorney.
"Mounting evidence suggests Wall Street investors are inserting themselves into the FDA drug approval process to manipulate stock prices for financial gain," said CREW Executive Director Melanie Sloan. "Thoroughly researching companies before making investment decisions is smart; intentionally making false claims to a federal agency to drive down stock prices is illegal."
Martin Shkreli is the chief investment officer for the New York-based hedge fund MSMB Capital Management LLC. CREW based its complaint on publicly available data, documents CREW obtained through a Freedom of Information Act request to the FDA, and information provided by an individual employed by a company affected by Mr. Shkreli's actions.
Acknowledging a financial interest, but with no medical expertise, Mr. Shkreli has posted blogs on investing website SeekingAlpha.com, spreading unfounded and inaccurate rumors about drugs owned by companies he was shorting. He also inserted himself into the FDA approval process for pending drugs of companies he was shorting. Following such actions, the companies' stock price dropped and Mr. Shkreli made money.
"Mr. Shkreli seems more interested in lining his own pockets than in fostering groundbreaking medical advances," continued Ms. Sloan. "The U.S. Attorney's Office has done an impressive job prosecuting insider trading, sending the clear message to Wall Street that such conduct will not be tolerated. Short-sellers like Mr. Shkreli who manipulate markets and government agencies for private financial gain should be pursued just as vigorously."
Citizens for Responsibility and Ethics in Washington (CREW) is a nonprofit 501(c)(3) organization dedicated to promoting ethics and accountability in government and public life by targeting government officials -- regardless of party affiliation -- who sacrifice the common good to special interests. CREW advances its mission using a combination of research, litigation and media outreach.
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According to the newspaper:
Mr. Siri is also representing ICAN in petitioning the FDA to "pause distribution" of 13 other vaccines, including combination products that cover tetanus, diphtheria, polio, and hepatitis A, until their makers disclose details about aluminum, an ingredient researchers have associated with a small increase in asthma cases.
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Ayman Chit, head of vaccines for North America at Sanofi, told the newspaper that development of the vaccine began in 1977, over 280 million people worldwide have received it, and there have been more than 300 studies, some with up to six months of follow-up.
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Asked about RFK Jr.'s anti-vaccine record during a Time "Person of the Year" interview published Thursday, the president-elect said that "we're going to be able to do very serious testing" and certain vaccines could be made unavailable "if I think it's dangerous."
Trump toldNBC News last weekend: "Hey, look, I'm not against vaccines. The polio vaccine is the greatest thing. If somebody told me to get rid of the polio vaccine, they're going to have to work real hard to convince me. I think vaccines are—certain vaccines—are incredible. But maybe some aren't. And if they aren't, we have to find out."
Both comments generated concern—like the Friday reporting in the Times, which University of Alabama law professor and MSNBC columnist Joyce White Vance called "absolutely terrifying."
She was far from alone. HuffPost senior front page editor Philip Lewis said that "this is just so dangerous and ridiculous" while Zeteo founder Mehdi Hasan declared, "We are so—and I use this word advisedly—fucked."
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Multiple critics altered Trump's campaign slogan to "Make Polio Great Again."
U.S. Sen. Elizabeth Warren (D-Mass.) responded with a video on social media:
Without naming anyone, Senate Minority Leader Mitch McConnell (R-Ky.), a polio survivor, put out a lengthy statement on Friday.
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