Shkreli announced abdication from the company he founded after FBI arrested him Thursday on fees he defrauded investors in his former hedge fund

Pharmaceutical entrepreneur Martin Shkreli has resigned as chief executive of the company he founded a day after being arrested on forgery fees.

Shkrelis Turing Pharmaceuticals caused international outrage in September after it hiked the price of a Daraprim, a 70 -year-old drug used by cancer and Aids cases, by 5,000% overnight.

On Thursday, Federal Bureau of Investigation agents detained Shkreli at his Manhattan home on fees that he defrauded investors in his former hedge fund, MSMB Capital Management.

Martin Shkreli, pharmaceuticals entrepreneur, arrested by FBI

In a statement Turing “re saying it” had appointed Ron Tilles, chairman, as interim CEO. We wish to thank Martin Shkreli for helping us construct Turing Pharmaceuticals into the dynamic research-focused busines it is today, and wish him best available in his future struggles, told Tilles.

The 32 -year-old pleaded not guilty in Brooklyn federal courtroom on Thursday to seven counts of defences fraud and scheme. He was exhausted on bail and tweeted: Glad to be home. Thanks for the support.

The fees are unrelated to his tenure at Turing.

United States attorney Robert Capers of the east territory of New York has accused Shkreli of operating a Ponzi scheme that had cost investors more than $11 m. According to Capers, Shkreli used another biopharmaceutical busines, Retrophin, as his personal piggybank and defrauded investors into investing in his busines by lying about its success and its assets.

The fees announced today describe a defences forgery trifecta of lies, fraud and greed. As accused, Martin Shkreli targeted investors and retained their business by making several misrepresentations and omissions about key facts of the funds he oversaw, Capers said.

Shkreli, who has previously repudiated these allegations, faces a maximum penalty of 20 years imprisonment if imprisoned on all charges.

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