*Martin Shkreli has resigned as chief executive officer of Turing Pharmaceuticals AG following his arrest on securities fraud charges Thursday.
Best known for jacking up the price of a life-saving AIDS drug from $13.50 a pill to $750 and paying $2 million for the only copy of Wu Tang Clan’s latest album, Shkreli, 32, is accused of repeatedly losing money for investors and lying to them about it, and illegally taking assets from one of his companies to pay off debtors in another.
He denied wrongdoing Thursday after he was arrested and then freed on a $5 million bond. The charges are related to his actions before he founded Turing this year.
In a statement Friday after Shkreli’s resignation, Turing said he’ll be replaced on an interim basis by Chairman Ron Tilles. “We wish to thank Martin for helping us build Turing Pharmaceuticals into the dynamic research focused company it is today, and wish him the best in his future endeavors,” Tilles said.
“Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said at a press conference.
Evan Greebel, a New York lawyer, who is alleged in the federal indictment to have helped Shkreli in his schemes, was also arrested and charged. Like Shkreli, he pleaded not guilty, and he was freed on a $1 million bond.