Martin Shkreli has been released on $5 million bail, but not without some conditions

By Char Adams
December 18, 2015 01:10 PM

Martin Shkreli is free on $5 million bail after being arrested on Thursday for securities fraud, PEOPLE has confirmed. His lawyer said he “expects to be fully vindicated” of any wrongdoing.

Federal Magistrate Judge Robert Levy released the infamous entrepreneur on Thursday just hours after FBI agents hauled him from a New York building for his alleged misconduct involving both a pharmaceutical company and hedge fund he once headed, USA Today reports.

Shkreli is charged with 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 FBI. He could face up to 20 years in prison if convicted.

A spokesman for Shkreli told the Associated Press that his client “expects to be fully vindicated.”

Martin Shkreli is led into court in New York in handcuffs after his arrest
Craig Ruttle/AP

Shkreli, 32, pleaded not guilty at the Thursday hearing before being released. He was ordered to turn over his passport and his travel is restricted to parts of New York, NBC News reports.

Federal officials allege Shkreli “engaged in multiple schemes” to mislead investors at the hedge fund and used assets from the pharmaceutical company, Retrophin Inc., to pay off debts.

“His plots were matched only by efforts to conceal the fraud, which led him to operate his companies, including a publicly traded company, as a Ponzi scheme “the FBI said in a statement.

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Authorities noted that Shkreli defrauded hedge fund investors and misappropriated more than $11 million in assets from Retrophin.

The 32-year-old drew criticism as CEO of Turing Pharmaceuticals earlier this year when the company increased the price of a life-saving drug by 5,000 percent.

He resigned from his position as CEO of Turing Pharmaceuticals on Friday, the company announced.

Ron Tilles has been appointed interim CEO.

A company official told The New York Timesthat Shkreli’s arrest and seven-count indictment made it untenable for Shkreli to remain CEO.

In addition to the criticized price-hike, Shkreli made headlines when he was revealed as the mystery buyer of the coveted Wu-Tang Clan album, Once Upon a Time in Shaolin.

Officials announced that the album remained untouched by authorities amid Shkreli’s arrest on Thursday.

The FBI said on Twitter that there was no warrant to seize any of the CEO’s property, “which means we didn’t seize the Wu-Tang Clan album.”

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