Martin Shkreli

Martin Shkreli
Born:	March 17, 1983 Brooklyn, New York, United States
Charges:	Securities fraud (2 counts); conspiracy to commit securities fraud (1 count)
Sentence:	84 months (7 years) federal prison; $7.36 million forfeiture; $75,000 fine; $1.39 million civil penalty (SEC); $64.6 million disgorgement (FTC antitrust case); lifetime ban from pharmaceutical industry
Facility:	FCI Allenwood Low
Status:	Released May 18, 2022; completed supervised release September 2022

Martin Shkreli (born March 17, 1983) is an American businessman, former hedge fund manager, and convicted felon who became widely known as "Pharma Bro" after his company Turing Pharmaceuticals raised the price of the antiparasitic drug Daraprim by more than 5,000 percent in 2015. He was convicted in 2017 of securities fraud related to his hedge funds and sentenced to seven years in federal prison. In a separate civil antitrust case, he was banned for life from the pharmaceutical industry and ordered to pay $64.6 million in disgorgement. Shkreli was released from prison in May 2022 after serving approximately five years.

Background

Early Life

Shkreli was born on March 17, 1983, at Coney Island Hospital in Brooklyn, New York. His parents were Roman Catholic Albanians who had emigrated from Albania and worked as janitors. His family descends from the Shkreli tribe in Albania. He was raised in a working-class community in Sheepshead Bay, Brooklyn, with two sisters and a brother. Shkreli was raised Catholic and attended Sunday school as a child.

Shkreli once declared himself "the most successful Albanian to ever walk the face of this earth."

Education

Shkreli attended Hunter College High School, an elite public institution for gifted students in New York City. Sources differ on whether Shkreli graduated from Hunter or was expelled before his senior year and received the credits necessary for his high school diploma through City-As-School High School.

He received a bachelor's degree in business administration from Baruch College in 2004, with a focus on finance. While still in college, he secured an internship at the hedge fund Cramer, Berkowitz & Co. at age 17, marking his entry into Wall Street. Early influences included a family member's battle with treatment-resistant depression, which sparked Shkreli's interest in pharmaceuticals and the challenges of drug development for rare conditions. His affinity for finance emerged young—he purchased his first stock shares in Compaq at age 12.

Early Career

Wall Street

Shkreli began his career at Cramer, Berkowitz & Co., the hedge fund managed by Jim Cramer (later host of CNBC's "Mad Money"), in early 2000 while still attending Baruch College. During his tenure there, Shkreli recommended short-selling the stock of Regeneron Pharmaceuticals, a biotech company testing a weight-loss drug. When its price dropped in accordance with Shkreli's prediction, Cramer's hedge fund profited. The trade drew the attention of the Securities and Exchange Commission, which investigated Shkreli but was unable to prove wrongdoing.

After four years as an associate at Cramer Berkowitz, Shkreli worked as a financial analyst for Intrepid Capital Management and UBS Wealth Management.

Elea Capital Management

In 2006, Shkreli started his first hedge fund, Elea Capital Management. In 2007, Lehman Brothers sued Elea in New York state court for failing to cover a put option transaction in which Shkreli bet wrong on a broad market decline. When stocks rose, Shkreli did not have the money to cover his losses. Lehman won the case in October 2007, but the organization collapsed before receiving the dues.

MSMB Capital Management

In September 2009, Shkreli launched MSMB Capital Management along with childhood friend and portfolio manager Marek Biestek. The hedge fund focused on biotech and pharmaceutical companies. According to prosecutors, Shkreli lied to investors about how well the funds were performing and sent newsletters touting profits of nearly 40% even after the fund experienced huge losses in 2011 and stopped trading.

Retrophin

In 2011, Shkreli co-founded Retrophin, a biotechnology company focused on rare diseases. The company was named after recombinant dystrophin, a protein missing in patients with muscular dystrophy. Shkreli served as CEO until 2014, when he was ousted by the board of directors amid allegations of financial misconduct. According to prosecutors, Shkreli used stock and cash from publicly traded Retrophin to pay off duped hedge fund investors and to cover personal loans and other debts.

In 2012, Citizens for Responsibility and Ethics in Washington (CREW) accused Shkreli of attempting to manipulate the FDA for his own profit after he filed multiple requests with the Food and Drug Administration to reject products from companies he had publicly shorted.

Turing Pharmaceuticals and the Daraprim Controversy

Founding and Daraprim Acquisition

In February 2015, Shkreli founded Turing Pharmaceuticals (later renamed Vyera Pharmaceuticals). In August 2015, the company acquired the U.S. marketing rights to Daraprim (pyrimethamine) from Impax Laboratories for $55 million. Daraprim, first approved by the FDA in 1953, is an antiparasitic medication used to treat toxoplasmosis, a parasitic infection that poses serious and often life-threatening consequences for those with compromised immune systems, including babies born to infected mothers and individuals with HIV/AIDS.

Price Increase

In September 2015, Turing raised the price of Daraprim from $13.50 per pill to $750 per pill—an increase of more than 5,000 percent (or approximately 4,000 percent from the $17.50 price some sources cite). At the time, Daraprim was the only FDA-approved drug for the treatment of toxoplasmosis.

The price hike generated immediate nationwide outrage. Critics including Hillary Clinton, Bernie Sanders, and Donald Trump condemned the decision. Shkreli became known as "Pharma Bro" and was dubbed "the most hated man in America."

Anticompetitive Scheme

Beyond the price increase, Shkreli and Turing implemented an anticompetitive scheme to prevent generic competition. The company established restrictive distribution contracts and exclusive supply agreements designed to delay and impede generic competitors from entering the market. These practices ensured that hospitals, patients, and others had to pay "exorbitant prices or otherwise be forced to make difficult treatment decisions" because they couldn't access alternative treatments.

Federal Criminal Case

Arrest and Indictment

On December 17, 2015, Shkreli was arrested by the FBI on charges unrelated to the Daraprim price hike. He was charged with securities fraud, securities fraud conspiracy, and wire fraud conspiracy related to his management of MSMB Capital Management, MSMB Healthcare, and Retrophin.

Brooklyn U.S. Attorney Robert Capers described the charges as "a trifecta of lies, deceit and greed," accusing Shkreli of treating MSMB Capital and Retrophin "like a personal piggy bank" and running "a Ponzi scheme."

Trial and Conviction

Shkreli's six-week trial took place in Brooklyn federal court in the summer of 2017. On August 4, 2017, a jury found Shkreli guilty of:

• Two counts of securities fraud (for defrauding investors in MSMB Capital Management and MSMB Healthcare)
• One count of conspiracy to commit securities fraud (in connection with manipulating stock shares of Retrophin)

He was acquitted of five other counts, including wire fraud conspiracy—what his attorney called "the money count."

Evidence at trial revealed that between 2009 and 2014, Shkreli lied to investors about the performance of his hedge funds, made losing bets on biotech stocks, and then improperly used Retrophin stock and cash to pay back investors. All of his hedge fund investors ultimately received more than they originally invested—but only because Shkreli had embezzled funds from Retrophin to pay them back.

Witnesses at trial painted a picture of Shkreli as a complicated person who could inspire grand visions of life-saving pharmaceutical treatments while also frustrating people with his habit of playing fast and loose with facts. Several witnesses testified to Shkreli's brilliance, or even genius, as well as his tendency toward depression and self-sabotage.

Bail Revocation

Following his conviction, Shkreli was released on $5 million bail. However, on September 13, 2017, his bail was revoked after he posted on Facebook offering $5,000 for a strand of Hillary Clinton's hair during her book tour, which the judge perceived as solicitation to assault. Shkreli claimed the post was satire, and his lawyer described it as "tasteless but not a threat." Judge Kiyo Matsumoto determined that Shkreli represented a danger and sent him to the Metropolitan Detention Center in Brooklyn to await sentencing.

Sentencing

Shkreli was sentenced on March 9, 2018, by U.S. District Judge Kiyo A. Matsumoto. Federal sentencing guidelines had suggested a prison term of decades due to Judge Matsumoto's finding that the losses from Shkreli's crimes totaled $10.4 million.

During sentencing, Shkreli broke into tears and apologized to his investors:

• "I look back and I'm embarrassed and ashamed."
• "I am terribly sorry. I lost your trust."
• "This is my fault. I am not the victim here."
• "The one person to blame for me being here today is me. There is no conspiracy to take down Martin Shkreli. I took down Martin Shkreli with my disgraceful and shameful actions."

Prosecutors had sought 15 years; Shkreli's defense had requested 12 to 18 months plus community service and mandatory therapy. Judge Matsumoto sentenced Shkreli to:

• 84 months (7 years) in federal prison
• $75,000 fine
• $7.36 million in forfeiture

Judge Matsumoto said Shkreli seemed "genuinely remorseful" but faulted him for having "repeatedly minimized" his misconduct.

Forfeited Assets

As part of the forfeiture judgment, Shkreli was ordered to surrender several notable assets:

• The "Once Upon a Time in Shaolin" album by Wu-Tang Clan, which Shkreli had purchased for $2 million at auction in 2015—the only copy in existence
• "Tha Carter V" album by Lil Wayne
• A Picasso painting
• A $5 million stock account used as bail collateral

The Wu-Tang Clan album was sold at auction in 2021 for an undisclosed amount (later revealed to be approximately $4.75 million to PleasrDAO, a cryptocurrency collective) to raise funds for reimbursing victims.

FTC Antitrust Case

Lawsuit

In January 2020, the Federal Trade Commission (FTC), New York Attorney General Letitia James, and six other states (California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia) filed a civil antitrust lawsuit against Shkreli, Vyera Pharmaceuticals, and CEO Kevin Mulleady for anticompetitive conduct related to Daraprim.

The lawsuit alleged that Shkreli orchestrated an illegal scheme to maintain a monopoly on Daraprim by:

• Entering restrictive distribution contracts to limit access to the drug
• Establishing exclusive supply agreements to prevent generic competitors from obtaining samples
• Deliberately blocking competition to protect monopoly profits

Verdict

Following a seven-day trial in December 2021, U.S. District Judge Denise Cote ruled in January 2022 that Shkreli had violated federal and state antitrust laws. The court found that Shkreli's conduct was "egregious, deliberate, repetitive, long-running, and ultimately dangerous."

Judge Cote imposed:

• A lifetime ban from participating in the pharmaceutical industry in any capacity
• $64.6 million in disgorgement (representing excess profits from the anticompetitive scheme)

Vyera and Mulleady entered into a consent order settling the claims against them, requiring the company to pay up to $40 million, banning Mulleady from the pharmaceutical industry for seven years, and requiring Vyera to make Daraprim available to generic competitors at list price.

Appeals

Shkreli appealed the lifetime ban and $64.6 million penalty, arguing the injunction was "vague and overbroad." In January 2024, the Second Circuit Court of Appeals upheld the district court's ruling, finding that "[g]iven Shkreli's pattern of past misconduct, the obvious likelihood of its recurrence, and the life-threatening nature of its results," the lifetime ban was appropriate.

In October 2024, the U.S. Supreme Court declined to hear Shkreli's appeal, effectively finalizing the lifetime pharmaceutical ban and $64.6 million penalty.

SEC Case

Separately, in February 2022, U.S. District Judge Kiyo Matsumoto granted the SEC's motion ordering Shkreli to pay a $1.39 million civil penalty for violating securities laws between 2009 and 2014 and banned him for life from serving as an officer or director of any publicly traded company.

Incarceration and Release

Prison

Following his bail revocation in September 2017, Shkreli was held at the Metropolitan Detention Center in Brooklyn. After sentencing in March 2018, he was transferred to FCI Fort Dix (a low-security facility in New Jersey) after his request to serve at the federal prison camp at USP Canaan was denied. He was later transferred to FCC Allenwood in Pennsylvania.

In 2019, Shkreli was transferred to solitary confinement after prison authorities discovered he was using a contraband smartphone to conduct business from prison, including reportedly directing operations at Vyera Pharmaceuticals and firing an executive.

In April 2020, Shkreli sought compassionate release during the COVID-19 pandemic, claiming he should be allowed to help develop a remedy for COVID-19. The request was denied.

Release

On May 18, 2022, Shkreli was released from Allenwood prison and transferred to a Bureau of Prisons halfway house, having completed all programs that allowed for his sentence to be shortened. He was released from the halfway house in September 2022.

Following his release, Shkreli lived with his sister in Queens and earned $2,500 per month as a consultant for a small law firm, though he later indicated he had additional income from software ventures.

Post-Release Activities

Druglike

In July 2022, shortly after his release from prison, Shkreli announced the founding of Druglike, described as a "Web3 drug discovery software platform." The company claims to provide cloud-based, decentralized computing resources for early-stage drug discovery projects using blockchain technology and a cryptocurrency called Martin Shkreli Inu (MSI).

The venture drew immediate scrutiny. Attorneys general in New York and North Carolina announced they were investigating whether Druglike violated Shkreli's lifetime pharmaceutical industry ban, though Druglike stated it is "not a pharmaceutical company" and is "not engaged in pharmaceutical research or drug development."

In August 2022, the Martin Shkreli Inu cryptocurrency lost 90% of its value after an account believed to belong to Shkreli sold its holdings. Shkreli claimed the account had been hacked.

In January 2023, the FTC asked a federal judge to hold Shkreli in contempt for failing to provide information needed to determine whether he was violating the pharmaceutical industry ban through Druglike.

Wu-Tang Clan Album Lawsuit

In June 2024, PleasrDAO, the cryptocurrency collective that purchased the Wu-Tang Clan album for approximately $5 million, sued Shkreli claiming he had secretly made digital copies of the album in violation of their deal and distributed them to friends and followers online. Shkreli had allegedly bragged about keeping the files, posting on X: "LOL i have the mp3s you moron." He also stated on a podcast that he "burned the album and sent it to like, 50 different chicks."

On August 26, 2024, Judge Pamela K. Chen in Brooklyn federal court ordered Shkreli to turn over all copies of the album, including digital versions, and report the names of anyone he had distributed the music to by September 30, 2024. The judge also granted a preliminary restraining order barring Shkreli from "possessing, using, disseminating, or selling any interest" in the album.

In late 2024, Judge Chen ruled that Shkreli had potentially violated federal protections for trade secrets by retaining copies of the ultra-rare album after he forfeited it to prosecutors.

2024 Legal Defeats

In January 2024, the Second Circuit Court of Appeals upheld Shkreli's lifetime ban from the pharmaceutical industry and the $64.6 million disgorgement order related to the Daraprim antitrust case. The FTC characterized the ruling as affirming that "competition can now flourish for a crucial medication."

In October 2024, the U.S. Supreme Court rejected Shkreli's appeal of the $64.6 million disgorgement order, effectively ending his legal challenges to the antitrust judgment. New York Attorney General Letitia James announced the victory, stating it held Shkreli "accountable for his illegal scheme to monopolize the market for a lifesaving drug."

Supervised Release Violation

In late 2024, reports emerged that Shkreli had violated the terms of his supervised release by traveling out of state without permission from his probation officer. The outcome of this potential violation remains unclear.

2025 Activities

In December 2025, Q/C Technologies, a quantum-class computing developer, announced that Shkreli had joined as a Strategic Advisor alongside entrepreneur James Altucher. The company develops optical computing technology. Shkreli stated: "I'm convinced that the next leap in frontier computing is optical, not purely quantum. Q/C's 'quantum class' technology approach bridges frameworks, offering the potential for extraordinary performance and efficiency gains."

Personal Life

Shkreli has indicated that his Catholic upbringing has been "a guiding post" for him, although he has stated he does not believe in God.

In December 2020, while incarcerated, Shkreli began a relationship with Christie Smythe, a former Bloomberg News reporter who had covered his arrest. They became engaged during his imprisonment, but by October 2021, Smythe stated they had broken up but remained friends. In October 2023, it was revealed that Shkreli had a romantic relationship with Madison Campbell, CEO of Leda Health, between February and August 2023.

Shkreli is an avid "League of Legends" player and once attempted to purchase an eSports team (Enemy eSports, which declined his $1.2 million offer). He subsequently founded Odyssey eSports, which failed to qualify for competitive leagues.

At his peak, Shkreli's net worth was estimated at approximately $70 million. Following legal issues and financial penalties, his net worth has significantly decreased.

Congressional Testimony

Shkreli was subpoenaed to appear before the Committee on Oversight and Government Reform of the U.S. House of Representatives to answer questions about the Daraprim price increase. On February 4, 2016, Shkreli appeared before the House committee but invoked his Fifth Amendment right against self-incrimination and refused to answer questions, smirking throughout the hearing. He later called the members of Congress "imbeciles" on Twitter.

See Also

• Securities Fraud
• Federal Sentencing Guidelines and Offense Enhancements
• Restitution,_Fines,_and_Forfeiture
• FCI Fort Dix (low-security)
• Residential Reentry Centers (Halfway Houses)
• Supervised Release

External Links

• Department of Justice Press Release on Sentencing
• SEC v. Martin Shkreli
• Martin Shkreli - Wikipedia

Frequently Asked Questions

Q: What was Martin Shkreli convicted of?

Martin Shkreli was convicted of two counts of securities fraud and one count of conspiracy for defrauding investors in two hedge funds he managed.

Q: How long was Martin Shkreli's sentence?

Shkreli was sentenced to 7 years in federal prison. He was released in May 2022 after serving approximately 5 years.

Q: Why is Martin Shkreli infamous?

Shkreli became notorious for raising the price of the life-saving drug Daraprim by over 5,000% when he was CEO of Turing Pharmaceuticals, though this was not the crime he was convicted of.

Q: Where did Martin Shkreli serve his sentence?

Shkreli served time at various federal facilities including FCI Fort Dix.

Q: What happened to Martin Shkreli's Wu-Tang album?

Shkreli purchased the one-of-a-kind Wu-Tang Clan album 'Once Upon a Time in Shaolin' for $2 million in 2015. It was forfeited as part of his 2018 sentence and sold by the government to PleasrDAO, a cryptocurrency collective, for approximately $5 million. However, Shkreli allegedly kept digital copies and shared them, bragging on social media "LOL i have the mp3s." In August 2024, a federal judge ordered him to surrender all copies and reveal everyone he had distributed the music to.

Q: What is Martin Shkreli doing now in 2025?

After his May 2022 release from prison, Shkreli has pursued several ventures despite his lifetime pharmaceutical industry ban. He founded Druglike, a Web3 drug discovery platform, which drew regulatory scrutiny. In December 2025, he joined Q/C Technologies as a Strategic Advisor for their optical computing technology. He continues to face legal issues including the Wu-Tang album lawsuit and reportedly violated his supervised release by traveling out of state without permission.

Q: Is Martin Shkreli still banned from the pharmaceutical industry?

Yes. In January 2024, the Second Circuit Court of Appeals upheld Shkreli's lifetime ban from the pharmaceutical industry and the $64.6 million disgorgement order related to the Daraprim antitrust case. In October 2024, the U.S. Supreme Court rejected his final appeal, ending his legal challenges. The FTC and multiple state attorneys general continue to monitor his activities for potential violations.