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Martin Shkreli Fired From KaloBios Pharmaceuticals + $2 Million Wu-Tang Album Could Be Seized By FBI

The controversial US pharma boss and hedge fund figure Martin Shkreli has been fired as CEO of KaloBios Pharmaceuticals following his arrest on fraud charges, the firm said Monday.

The news came on the heels of Shkreli’s resignation Friday as boss of Turing Pharmaceuticals, the day after his indictment over allegations of a Ponzi scheme-like fraud conspiracy.

Shkreli was “terminated as chief executive officer of the company and resigned from his position as a member of the board of directors” on December 17, the day of his arrest, KaloBios said in a securities filing.

US Justice Department officials suspect the 32-year-old of mounting a brazen fraud between 2009 and 2014 at two hedge funds and another firm, prior to his career at either pharmaceutical company.

He is accused of lying to investors, moving money between investments to cover losses in other vehicles and siphoning off cash for personal expenses.

Shkreli rose to infamy earlier this year after he, as founder and CEO of Turing, bought rights to toxoplasmosis drug Daraprim and promptly raised the price from $13.50 a tablet to $750.

His tenure at KaloBios was particularly brief, as he had taken over as chief executive only on November 19.

Shares of KaloBios have been suspended since Thursday, after falling more than 50 percent in pre-market trade on news of Shkreli’s arrest that day.

Adding to Shkreli’s troubles are reports that funds generated from his alleged fraudulent activities could be as much as $65 million. If it’s determined that any of his possessions, including the $2 million Wu-Tang Clan album, ‘Once Upon A Time In Shaolin‘, were purchased with that money, they could be subject to forfeiture by the government.

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