Key facts
- Martin Shkreli is accused of violating his lifetime ban from the pharmaceutical industry.
- The FTC and seven states allege Shkreli traded pharma stocks and discussed the industry online.
- Regulators seek to hold Shkreli in contempt and fine him for profits from pharma stock trades since February 4, 2022.
- Shkreli was previously banned for life after raising the price of Daraprim and was convicted of securities fraud in 2017.
Federal and state regulators have accused Martin Shkreli of violating his lifetime ban from the pharmaceutical industry by trading stocks and discussing companies online. The Federal Trade Commission and a coalition of seven states filed a court document on Tuesday, asking US District Judge Denise Cote to hold Shkreli in contempt and issue a fine equal to his profits from trading pharmaceutical company stocks since February 4, 2022.
Shkreli, once known as "pharma bro" for his role as CEO of Turing Pharmaceuticals when the price of Daraprim was significantly increased in 2015, was found liable for violating antitrust laws and received the lifetime ban in 2022. He was also sentenced to seven years in prison in 2017 for fraud charges and released in 2022.
According to the FTC, Shkreli has been publicly trading pharmaceutical company stocks since July 2022, including a trading challenge involving 11 pharma stocks with a $10 million starting balance. During a livestream, Shkreli reportedly said, "I have some I'[d] show you, but, like, I know feds are watching, so f[*]ck that," suggesting he has additional trading activities.
Daniel Guarnera, director of the FTC's bureau of competition, stated that the action serves as notice that the FTC will enforce court orders.