FTC Asks Judge to Hold Martin Shkreli in Contempt for Forming New Drug Company

The Federal Trade Commission Friday asked that Notable “pharma bro” Martin Shkreli to be held in contempt of court for forming a new drug company In violation of a judge’s ban, the convicted fraudster cannot work in the pharmaceuticals sector.

Shkreli, who was released from prison Last year, February was banned “for life from directly or indirectly
participating in any manner in the pharmaceutical industry” Because of the FTC’s antitrust case against him, and a previous drug company he founded.

The order was inspired by the January 2022 ruling of Manhattan federal judge Denise Cote that Shkreli oversaw an illicit scheme to keep Daraprim a monopoly, which continued even while he was being held in prison for another related conviction. securities fraud case.

The FTC stated Friday in a court filing that Shkreli in July Druglike, a new company was formed. “that appears to be involved in the drug industry.”

The filing quoted Druglike’s press release The company was renamed after the announcement. “a Web3 drug discovery software platform co-founded by Martin Shkreli.”

According to the FTC, Shkreli’s creation of the company and his failure to pay the nearly $25 million he owes in a $64.6million judgment in the suit suggest that he violates the court’s orders.

Shkreli was sued by the FTC, along with a number of other states. He claimed in the filing that he had failed to comply with their requests to provide documents and interview him as part their investigation into whether Druglike’s involvement with the industry violates the Cote’s ban.

The FTC stated that Cote required Shkreli to provide this information to the agency.

“Martin Shkreli’s failure to comply with the court’s order demonstrates a clear disregard for the law,” Holly Vedova is the director of FTC’s Bureau of Competition.

“The FTC will not hesitate to deploy the full scope of its authorities to enable a comprehensive investigation into any potential misconduct,” Vedova stated.

Benjamin Brafman (a Shkreli lawyer) declined to comment on FTC filing.

Shkreli became a household name in 2015 when Vyera Pharmaceuticals (his drug company) raised the price for Daraprim, an anti-parasitic medication that is used to treat HIV-positive pregnant women, babies, and HIV-positive persons, by more than 4000%. The cost of Daraprim was $17.50 per pill, to $750.

Federal prosecutors in Brooklyn, New York indicted Shkreli for misleading investors in two hedge funds that he had previously managed and manipulating stock shares in another. company he foundedRetrophin is also known as Travere Therapeutics.

Shkreli was convicted in mid-2017 on several charges in the case. His $5 million post-trial release bond was revoked A judge offered a $5,000 cash reward to his Facebook fans if he provided samples of hair from Hillary Clinton, a few weeks later.

Shkreli was sentenced for seven years in prison in 2018. In 2018, Shkreli was sentenced to seven years in prison. He was released last May into a federal halfwayhouse.

Edmund Sullivan, a friend who previously served on Retrophin’s board, drove Shkreli back to New York.

Shkreli’s criminal case mentions Sullivan as one of seven people who received, at Shkreli’s direction, thousands of shares in a company shell that was used as a vehicle by Retrophin to become publicly traded. Sullivan wasn’t charged in this case with any wrongdoing.