He is accused of fraud relating to a drug company he previously headed, Retrophin, and a hedge fund, MSNB Capital Management, where he was a fund manager.
He is currently chief executive of Turing Pharmaceuticals.
Mr Shkreli was arrested by the FBI.
He was arrested in Manhattan, New York, accused of running a “Ponzi scheme” where Retrophin assets were illegally used to pay off debts after MSMB lost millions of dollars.
At press conference on Thursday US Attorney Robert Capers, said: “Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit.”
FBI prosecutors allege Mr Shkreli cheated the company’s investors out of $11m (£7.3m).
The US Securities and Exchange Commission also charged him with defrauding investors in his hedge fund to hide poor investment choices.
The SEC alleged Mr Shkreli took $120,000 from one fund to use on personal expenses – including his clothes and rent- told investors in another fund it had $35m in assets when it really had less than $7,000 and stole $900,000 from a fund in 2013 to pay a legal settlement.
Source: BBC
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