“Pharma Bro” Martin Shkreli is facing fresh legal action — this time for allegedly violating a 2022 civil court order banning him from the pharmaceutical industry for life.
Shkreli gained international attention — and his nickname — after he hiked the price of a life-saving drug back in 2015. The 43-year-old was then sentenced to prison in 2017 for securities fraud in a case unrelated to his price-hiking scandal and was released in 2022. He has since made a career off of livestreaming his stock trades, which allegedly include at least 60 pharmaceutical-related stocks.
The Federal Trade Commission (FTC) and seven states are accusing Shkreli of violating his lifetime ban by publicly trading in the industry and “broadcasting his opinions about the business and management of many Pharmaceutical Companies through livestreaming and posting on numerous social media platforms, including YouTube, X and Reddit,” according to CNBC.
Shkreli currently has over 641,000 followers on X, as well as more than 95,000 subscribers on YouTube. His livestreams regularly attract thousands of viewers.
Shkreli’s conviction
Shkreli was convicted in 2017 for two counts of securities fraud and one count of conspiracy after he was caught defrauding investors related to his two hedge funds and pharmaceutical company. Shkreli was sentenced to seven years in prison — he was released after four years and three months — and faced up to $7.3 million in fines.
But Shkreil gained notoriety long before his prison sentence. In 2015, the then pharmaceutical entrepreneur acquired a drug called Daraprim, a life-saving medication used to treat parasitic infections, and hiked the price from $13.50 to $750 per tablet. According to the New York Times, the move earned him the nickname “pharma bro” due to his harsh attitude despite facing widespread criticism.
In 2022, a judge ruled Shkreli tried to maintain a monopoly over the drug by using anticompetitive tactics. The judge also found that he had violated state and federal antitrust laws and that his former pharmaceutical company brought in $64.6 million in profits through these practices.
He was ordered to repay the entirety of the profits to victims and was barred for life from the pharmaceutical industry.
The FTC and seven states — California, New York, North Carolina, Illinois, Ohio, Virginia and Pennsylvania — say Shkreli began allegedly violating the court’s ban almost immediately after he was released from prison in May 2022.
On Oct. 13, the FTC asked a federal judge to hold Shkreli in contempt and fine him the total profits he made from his trades. They are also asking a judge to force him to divest from any pharmaceutical company stocks he currently owns and for him to face escalating consequences for any future violations, including possible jail time.
Rinna Diamantakos is a contributing editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.
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