Martin Shkreli, freed on bail, denies fraud charges

Federal prosecutors accuse Shkreli of using Retrophin to repay investors who lost money in his now-defunct hedge fund, MSMB Capital Management.

The drug company CEO blasted as a poster boy for price-gouging has resigned as the head of Turing Pharmaceuticals, the company announced Friday. In a statement Friday, Turing said that Tilles will continue to hold the board chairman position as well.

Mr Shkreli attracted widespread attention this fall after Turing bought the rights and raised the price more than 50-fold for a half-century-old drug that treats a parasitic infection that can be life threatening in HIV patients, pregnant women and others with compromised immune systems.

Authorities have said that the indictment handed down a day earlier did not have anything to do with Shkreli’s performance or dealings at Turing. “We wish to thank Martin Shkreli for helping us build Turing Pharmaceuticals into the dynamic research-focused company it is today, and wish him the best in his future endeavors”, said Tilles.

On Thursday (17Dec15), agents of the Federal Bureau of Investigation (FBI) swooped on Martin Shkreli, the pharmaceutical mogul who paid millions at auction for the band’s one-of-a-kind album Once Upon a Time in Shaolin.

He is facing allegations he misled investors in his hedge funds and looted a publicly-traded company to cover losses.

Mr Shkreli defended the price-rise as capitalism at work, but it sparked outrage from medical centres and even presidential hopefuls. He was released on five million dollar (£3.3 million) bail.

]Mr Shkreli recently became chief executive of another company, San Francisco-based KaloBios Pharmaceuticals.

Shkreli listed himself as founder and CEO of Turing Pharmaceuticals since October 2014, according to his LinkedIn profile.

The trading of KBIO shares was halted Thursday after the news of Shkreli’s arrest sent shares in a freefall.