Martin Shkreli raised the price of a HIV drug by 5,000 percent, purchased the $2 million Wu-Tang album, and offered Bobby Shmurda a deal to get out of prison. But, it looks like he may be joining Shmurda behind bars. 

(via NBC News)

The pharmaceutical company CEO who became infamous after hiking the price of an HIV drug by 5,000 percent has been arrested by the FBI on securities fraud charges, law enforcement sources said.

The arrest of Martin Shkreli comes amid an investigation related to a hedge fund and drug company he once ran, Reuters reported.

Shkreli, 32, who was taken into custody at his midtown Manhattan residence, is currently the boss of Turing Pharmaceuticals. He was previously the manager of hedge fund MSMB Capital Management and chief executive of biopharmaceutical company Retrophin Inc.
He is expected to be named in an indictment in federal court in Brooklyn, New York, along with Evan Greebel, who was Retrophin’s outside counsel while he was a partner at the law firm Katten Muchin Rosenmann, Reuters reported.

Shkreli is expected to be charged for illegally using Retrophin assets to pay off debts after MSMB lost millions of dollars, sources told Reuters.

The probe dates back to at least January when Retrophin said it received a subpoena from prosecutors seeking information about its relationship with Shkreli.

That subpoena also sought information about individuals or entities that had invested in funds previously managed by Shkreli, Retrophin said in a regulatory filing.

MSMB Capital Management was founded in 2009, and Shkreli announced its closure in 2012. Retrophin was founded in 2012, and Shkreli was its CEO until the company fired him in September 2014.

Retrophin in August sued Shkreli in federal court in Manhattan for $65 million, claiming he had used his control over Retrophin to enrich himself and pay off claims of investors in MSMB, which he had also defrauded.

“The $65 million Retrophin wants from me would not dent me,” Shkreli previously told Bloomberg Businessweek about the suit. “I feel great. I’m licking my chops over the suits I’m going to file against them.”

In September, Shkreli became a lightning rod over another issue: the soaring prices of prescription drugs.

He announced that month that he was jacking up the cost of Daraprim from $13.50 to $750 per pill, stoking outrage. Headlines called him the “most hated man in America.” The backlash led the privately held company to say last month it was cutting the cost of the drug.