Sunday July 5th, 2020 1:26PM

Feds probe alleged prison cellphone use by 'Pharma Bro'

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Federal authorities said Friday they are investigating claims that Martin Shkreli has been running his pharmaceutical company from behind bars using a contraband smartphone.

The U.S. Bureau of Prisons told The Associated Press it has opened an inquiry into whether the man nicknamed the "Pharma Bro" violated prison rules forbidding inmates from conducting business and possessing cellphones.

Shkreli, 35, is serving a seven-year sentence for securities fraud at the Federal Correctional Institution at Fort Dix, New Jersey, a low-security prison complex about 40 miles (65 kilometers) from Philadelphia. He was found guilty of lying to investors in two failed hedge funds and cheating them out of millions.

The Wall Street Journal reported this week that Shkreli has used a cellphone to call the shots at his drug company, Phoenixus AG, posting regularly to social media and even firing the company's chief executive a few weeks ago.

Shkreli's defense attorney, Benjamin Brafman, declined to comment.

The Bureau of Prisons said federal prisoners caught in possession of cellphones face up to an additional year behind bars if convicted. Shkreli also could face disciplinary sanctions within the prison if he is found to have conducted business.

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

Shkreli had been charged with eight counts of securities fraud, conspiracy to commit securities fraud and wire fraud, for his role managing MSMB Capital Management and MSMB Healthcare between 2009 and 2014.

The case was unrelated to the 2015 furor he caused when he raised the price by more than 5,000 percent of a drug used to treat an infection that occurs in some AIDS, malaria and cancer patients.

  • Associated Categories: U.S. News, Associated Press (AP), AP National News, Top U.S. News short headlines, AP Business, AP Business - Corporate News, AP Business - Industries, AP Business - Health Care
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Police: Puppy stabbed during break-in 'getting lots of love'
Police in New Hampshire say a 4-month-old puppy was stabbed during a break-in at a home
3:41PM ( 8 minutes ago )
Police: Stormy Daniels' arrest at strip club was improper
A police investigation has concluded that last year's arrest of Stormy Daniels at an Ohio strip club was improper but not politically motivated or planned ahead of time
3:39PM ( 11 minutes ago )
Conflicting reports surround fate of baby of UK IS bride
There are conflicting reports Friday about the newborn son of U.K.-born teenager Shamima Begum, who left her London home to join the Islamic State group in Syria, after Begum's lawyer said the boy was reported to have died
3:35PM ( 14 minutes ago )
Associated Press (AP)
Sanders' 'Medicare for All' expands long-term care benefits
Sanders and House allies expanding long-term care under 'Medicare-for-all' bills; no word on how they'll pay
3:11PM ( 38 minutes ago )
CDC: Unvaccinated Oregon boy almost dies of tetanus
An unvaccinated 6-year-old boy in Oregon was hospitalized for eight weeks and almost died of tetanus after getting cut while playing on a farm
3:02PM ( 47 minutes ago )
International Women's Day: Strikes, protests and holidays
International Women's Day is being marked across the globe Friday under the slogan #BalanceforBetter, with calls for a more gender-balanced world
3:01PM ( 48 minutes ago )
AP National News
Warner Bros. CEO apologizes to staff amid misconduct reports
Warner Bros. CEO apologizes to staff amid misconduct reports
3:10PM ( 39 minutes ago )
The Latest: Trump says he feels 'very badly' for Manafort
President Donald Trump says he feels "very badly" for Paul Manafort
3:08PM ( 41 minutes ago )
'Simpsons' producers pull iconic Michael Jackson episode
The producers of "The Simpsons" are removing a classic episode that featured the voice of Michael Jackson
2:53PM ( 56 minutes ago )
AP Business
Massive Venezuela power outage raises tensions amid crisis
Much of Venezuela was engulfed by darkness into Friday amid one of the largest power outages in years, raising tensions in a country already on edge from ongoing political turmoil
1:26PM ( 2 hours ago )
Manafort gets 47 months, judge cites mostly 'blameless' life
Manafort sentenced to nearly four years in prison, much less than what was called for under sentencing guidelines; Trump says he feels 'very badly' for him
12:58PM ( 2 hours ago )
Stocks fade as weak hiring adds to unease on global economy
U.S. stocks fell Friday morning as signs piled up that the global economy is hitting the brakes, headlined by a surprisingly weak report on the U.S. job market
11:06AM ( 4 hours ago )
AP Business - Industries
Stocks slide as investors wait for details on trade talks
Health care companies are leading a broad slide on Wall Street as investors wait for more details on reports that the U.S. and China are moving closer to a deal to resolve their costly trade dispute
3:07PM ( 4 days ago )
Lilly to sell cheaper version of top-selling insulin Humalog
Eli Lilly is offering a half-price version of its top-selling insulin Humalog
2:32PM ( 4 days ago )
Stocks slump as investors wait for details on trade talks
Stocks are broadly lower on Wall Street, knocking more than 300 points off the Dow Jones Industrial Average
1:43PM ( 4 days ago )
AP Business - Health Care
Police: Puppy stabbed during break-in 'getting lots of love'
Police in New Hampshire say a 4-month-old puppy was stabbed during a break-in at a home
3:41PM ( 8 minutes ago )
Police: Stormy Daniels' arrest at strip club was improper
A police investigation has concluded that last year's arrest of Stormy Daniels at an Ohio strip club was improper but not politically motivated or planned ahead of time
3:39PM ( 11 minutes ago )
Conflicting reports surround fate of baby of UK IS bride
There are conflicting reports Friday about the newborn son of U.K.-born teenager Shamima Begum, who left her London home to join the Islamic State group in Syria, after Begum's lawyer said the boy was reported to have died
3:35PM ( 15 minutes ago )
UConn's Samuelson to miss American tourney with back injury
UConn All-American Katie Lou Samuelson will not play in the American Athletic Conference tournament this weekend because of a back injury suffered last Saturday against Houston
3:31PM ( 19 minutes ago )
Fleetwood makes 2 eagles, sets target at Bay Hill
Tommy Fleetwood makes 2 eagles, takes early lead at Arnold Palmer Invitational
3:29PM ( 21 minutes ago )