'Pharma bro' Martin Shkreli arrested in FBI securities fraud sting

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'Pharma bro' Martin Shkreli arrested in FBI securities fraud sting

Updated at 4:11 p.m. ET: Shkreli was released after posting $5 million bond, CNBC reported. He surrendered his passport and had his travel restricted to parts of New York.

His next court appearanced is scheduled for Jan. 20.

Updated 12:50 p.m. ET: U.S. Attorney Robert Capers said drug company CEO Martin Shkreli ran his companies like a "Ponzi scheme."

Autorities unsealed the complaint Thursday. Arrested along with Shkreli was Evan Greebel, the outside counsel for the pharmaceutical company Retrophin, for which Shkreli was also the chief executive. The seven-count indictment alleges Shkreli and others orchestrated a fraud scheme, and used Retrophin assets to pay off debts for MSMB Capital Management, a hedge fund, NBC News reported.

Original post: The drug company CEO who came under fire after raising the cost of a life-saving drug more than 5,000 percent earlier this year has been arrested by the FBI. 

Federal agents arrested Martin Shkreli Thursday morning in connection with a securities fraud investigation related to a firm he founded, Bloomberg reported.

Shkreli is currently the CEO of Turing Pharmaceuticals, but he was previously the manager of MSMB Capital Management, a hedge fund. He was also the chief executive of Retrophin, a biopharmaceutical company, NBC News reported.

Details of the charges were not released, NBC News reported.

Bloomberg reported that Shkreli made payoffs and set up false consulting arrangements. 

Shkreli's current company, Turing Pharmaceuticals, announced that it was going to raise the cost of Daraprim from $13.50 to $750 a pill, NBC News reported.

He was also said to have paid $2 million for the only copy of the new Wu-Tang Clan album, "Once Upon a Time in Shaolin."

When news of his arrest broke Thursday morning, many people celebrated.

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