Bring him in, boys.

The pharmaceutical executive who gained notoriety for price-gouging a vital drug by 5,000%, then furthered his infamy by splashing $2 million on Wu-Tang Clan’s edition-of-one album, has been arrested by the FBI on fraud charges.

Martin Shkreli – who yesterday announced his intention to bail out Bobby Shmurda – is suspected of siphoning cash from Retrophin, the biotechnology firm he started in 2011, to pay off debts to investors in his defunct hedge fund.

The 32-year-old was “engaged in multiple schemes to ensnare investors through a web of lies and deceit,” U.S. Attorney Robert L. Capers told reporters. “His plots were matched only by efforts to conceal the fraud, which led him to operate his companies … as a Ponzi scheme.”

Federal prosecutors allege that Shkreli lied to investors in Retrophin and two hedge funds he founded. After losing money on stock bets he made through one hedge fund, Shkreli allegedly started another and used his new investors’ money to pay off his debts. Then he started Retrophin and used cash and stock from that company to settle with other investors, prosecutors claim.

At his arraignment on Thursday afternoon, Shkreli pleaded not guilty and was released on $5 million bond. [via Bloomberg/Washington Post]



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