[BREAKING] News broke that Valeant is now under federal investigation in Massachusetts and New York for its drug-pricing practices. VRX shares were down 11.5% at open.

Every once in a while, a single company combines virtually all of the market’s most toxic forces. Today I feel it’s my job to expose Valeant Pharmaceuticals International Inc. (NYSE: VRX).  for such a company and for the bad investment it is. Here’s why.

1. It’s got a risky and predatory business model.

2. It’s leveraged up to the hilt, with $30 billion of debt on just $9 billion in revenue in the trailing 12 months.

3. It’s on the radar of politicians, which is trouble for shareholders.

And here’s the real problem…

4. It’s widely owned by investors like you. Even if you don’t realize it, you may own this stock in any of the seven exchange-traded funds (ETFs) that hold it as a component.VRX

Already VRX stock dropped 25% in September. In a Super Crash, it’s going to be much worse. This stock is a yo-yo. It gained 6.48% yesterday, but the day before, it lost 4.21%.

And it’s really in trouble now.

Today let’s just focus on Valeant’s cynical and leveraged business model.

This is a $60 billion multinational pharmaceutical company with a portfolio of prescription drugs, including Kinerase and Wellbutrin, one of the most frequently prescribed antidepressants in the United States, and consumer products, mostly in the skin, eye, and oral care segments. Valeant’s revenue more than doubled from 2012 to 2014, jumping from $3.48 billion to $8.25 billion in just two years.

But look closely as how it did that…

VRX has achieved its status as one of the fastest-growing pharmaceutical companies in the world while taking advantage of every conceivable legal and tax loophole available. It has enriched its management and a small group of hedge funds while contributing to skyrocketing healthcare costs and leaving the bill for U.S. taxpayers and consumers to pay.