'Pharma Bro' Martin Shkreli accused of running company from prison

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'Pharma Bro' Martin Shkreli reportedly breaking rules in prison, feds launch investigation

The Wall Street Journal's Rob Copeland reports that Martin Shkreli is still running business from prison with contraband cellphone.

"Pharma Bro" Martin Shkreli, 35, is being investigated by federal authorities for allegedly running his pharmaceutical business from behind bars.

Nicknamed "Pharma Bro" for his polarizing frat boy antics and behavior, this latest twist comes in the wake of a Wall Street Journal report suggesting Shkreli was using a contraband cellphone to secretly lead his company from within the thick walls of the Federal Correction Institution in Fort Dix, New Jersey.

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In 2018, Shkreli was sentenced to seven years in prison for securities fraud, after he scammed investors out of millions of dollars. The controversial figure also made headlines for raising the price of anti-parasite drug Daraphim by 5,000 percent from $13.50 to $750 a pill. The drug helps with infection in malaria, AIDS and some cancer patients.

WSJ said that Shkreli secretly remains "a shadow power" at his drug company, Pheonixus AG, even with his limitations while serving time.

FILE- In this Feb. 4, 2016 file photo, pharmaceutical chief Martin Shkreli speaks on Capitol Hill in Washington, during the House Committee on Oversight and Reform Committee hearing on his former company's decision to raise the price of a lifesaving medicine. (AP)

The WSJ said Shkreli used the phone to post regularly on social media and even fired the company's chief executive nearly a month ago.

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"When there are allegations of misconduct, they are thoroughly investigated and appropriate action is taken if such allegations are proven true," said the Bureau of Prisons on Friday. "This allegation is currently under investigation."

The Bureau of Prisons (BOP) told AP that federal prisoners caught in possession of cellphones face up to an additional year behind bars if convicted. Shkreli also could face disciplinary action within the prison if he is found to have conducted business on their grounds. 

"Like all correctional agencies, the BOP continues to tackle the problem of contraband being introduced into our facilities, including contraband cellphones," The BOP told AP. "The BOP continually evaluates and deploys as appropriate, contraband-detecting technologies, including walk-through metal detectors and whole-body imaging devices."

According to the WSJ report, a board member at his Pheonixus company said it's well known that he uses a cellphone in prison.

The lawyer for Shkreli, Benjamin Brafman, declined to comment.

The Associated Press contributed to this report.