The U.S. Bureau of Prisons confirmed it is examining allegations that Martin Shkreli, a former pharmaceutical executive, used a prohibited mobile device to manage his former company while serving a seven-year sentence. The probe follows reports from the Wall Street Journal that Shkreli still exerts influence over Phoenixus AG, previously known as Turing Pharmaceuticals.
A Bureau of Prisons statement emphasized that any misconduct claims would be thoroughly reviewed, with potential consequences including disciplinary actions or criminal charges. Possession of contraband electronics in federal facilities is classified as a severe violation, potentially leading to restricted visits or isolation from other inmates.
Shkreli, 35, is currently housed at Federal Correctional Institution, Fort Dix in New Jersey. He was convicted in 2017 for securities fraud related to two hedge funds he managed, MSMB Capital and MSMB Healthcare. The case involved allegations of stock manipulation tied to Retrophin, the drug company he founded in 2011.
The Journal reported that FBI investigators have questioned Shkreli's associates about his ongoing involvement with the company. His attorney, Benjamin Brafman, has not commented on the allegations. Shkreli gained notoriety in 2015 for increasing the price of Daraprim by 5,000% after acquiring it through Turing Pharmaceuticals.
