Hedge Fund Manager Denies CREW Allegations

Jul 17 2012 | 5:02pm ET

A hedge fund manager accused by a legal watchdog group of stock price manipulation denies any wrongdoing.

The Citizens for Responsibility and Ethics in Washington accuse Martin Shkreli of MSMB Capital Management of having “inserted himself” into Food and Drug Administration approval processes for drugs proposed by companies he was shorting. CREW also alleges he spread "unfounded and inaccurate rumors about drugs owned by companies he was shorting." The group wants Preet Bharara, the U.S. attorney in Manhattan, to probe the hedge fund manager.

But Shkreli told FINalternatives his communications with the FDA were not out of line:

“Investors who are willing to voice their opinion and back it up play a valuable role in ensuring that all points of view are illuminated and examined,” Shkreli said in an e-mail. “The FDA has created channels with which to interact directly with citizens and encourages us to do so. I plan to continue taking advantage of this ability to interact directly with the agency when I have legitimate concerns about drugs under development. I'll also continue to be transparent on our holdings and our motives.”

CREW, a self-proclaimed “non-profit legal watchdog,” is best known for its attacks on members of Congress it deems “corrupt.” The group has pressed the Securities and Exchange Commission in the past to investigate Shkreli’s relationship with the FDA.

 


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