WASHINGTON (Reuters) -U.S. regulators asked a federal judge on Friday to carry Martin Shkreli in contempt for allegedly impeding its efforts to find out whether he flouted a ban on working within the pharmaceutical industry, where Shkreli gained the nickname “pharma bro” for pushing through exorbitant price increases and was convicted of scheming to defraud investors in a drugmaker.
In a filing in Manhattan federal court, the Federal Trade Commission (FTC) said Shkreli has not complied with its requests for information referring to Druglike Inc, an organization it said he formed last July, and noted his apparent failure to pay any of a $64.6 million penalty that accompanied the ban.
An attorney for Shkreli said she hoped to resolve the problem quickly. “We expect that it is a misunderstanding with the FTC,” said Brianne Murphy, who added that Druglike was a software company moderately than a drug company.
Shkreli became a lightning rod for criticism after raising the worth of the anti-parasitic drug Daraprim to $750 per tablet from about $17.50 in 2015 as chief executive of Turing Pharmaceuticals, and appearing unapologetic when criticized.
He was sentenced to seven years in prison after being convicted in August 2017 of defrauding investors in two hedge funds he ran, and scheming to defraud investors in drugmaker Retrophin Inc, where he had been chief executive prior to Turing.
Shkreli was released early from prison last May.
U.S. District Judge Denise Cote imposed the lifetime drug industry ban and $64.6 million penalty last February, related to Shkreli’s efforts to maintain generic Daraprim rivals off the market. Cote will determine the FTC’s contempt motion.
(Reporting by Diane Bartz and Jon Stempel; Editing by Bill Berkrot and David Gregorio)
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