Martin Shkreli, the 43-year-old infamously known as the "Pharma Bro," is currently in the crosshairs of the Federal Trade Commission and six state attorneys general. Prosecutors are alleging that Shkreli is blatantly ignoring his lifetime ban from the pharmaceutical industry by actively trading biotech stocks and flexing his market moves on social media.
The allegations
Authorities claim that since his 2022 release from prison, Shkreli has traded shares in more than 60 pharmaceutical companies, including heavy hitters like Pfizer, Moderna, Eli Lilly, and Novo Nordisk. He’s allegedly been using his YouTube channel to host livestreams where he breaks down his "magic trick" for trading, even bragging about his power to sway stock prices. In one instance, he reportedly went after Cassava Sciences, an Alzheimer’s treatment developer, right before their clinical trial news tanked, which saw his brokerage account spike by over $700,000.
High risk, higher drama
It’s not always a W for Shkreli, though. In November 2025, he bet against Capricor Therapeutics, causing their stock to drop 17% initially. But when the company dropped positive trial results, their shares went up 370% and Shkreli claimed his trading account was totally wiped out. He even joked on a stream, “I have some other accounts that I’[d] show you, but, like, I know feds are watching, so f–k that.”
Regulators are now naming his partner, Chelsea Voss, and his sister, Leonora Izerne, in the filings, alleging they helped facilitate his trading. At one point, he reportedly asked Voss for $30,000 to cover a margin call.
The fallout
Prosecutors want a federal judge to hold Shkreli in contempt, demanding he forfeit all profits from these trades and undergo a full financial audit. They’re also pushing for additional fines and potential jail time if he keeps violating the ban. Shkreli still owes $64.6 million from a previous judgment regarding the 2015 Daraprim price-gouging scandal, which remains unpaid.
Why it matters
This is a massive L for anyone trying to clean up the markets. If the court finds Shkreli is actively manipulating biotech stocks while under a lifetime industry ban, it proves just how hard it is to actually keep bad actors out of the game. If you’re playing the biotech space, keep in mind that influencers—even convicted ones—might be trying to move the price for their own gain.
