Martin Shkreli is free on $5 million bond, Bloomberg News reports.
Shkreli, 32, was arrested on Thursday morning by federal authorities on charges of securities fraud involving his former hedge fund, MSMB Capital, and, Retrophin, the publicly-traded biotech company he founded in 2011 and led until September 2014 when he was ousted by the board as CEO.
Prosecutors alleged that Shkreli carried out three interrelated fraudulent schemes by money from Retrophin to repay investors in MSMB Capital. US Attorney Robert Capers said his alleged transactions were “like a Ponzi scheme.”
Shkreli faces seven counts, including two counts of securities fraud, two counts of conspiracy to commit securities fraud, and three counts of conspiracy to commit wire fraud, according to the indictment.
He has pleaded not guilty to the charges, according to Bloomberg.
Shkreli gained notoriety in September of this year after his biopharma startup Turing Pharmaceuticals acquired the rights of Daraprim, an antiparasitic drug used to treat toxoplasmosis, and immediately hiked the price from $13.50 to $750.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.