Martin Shkreli Steps Down As Turing CEO After Arrest

A day after the arrest of its CEO for alleged securities fraud, Turing Pharmaceuticals announced resignation of Martin Shkreli while appointing another senior executive as interim chief.

Shkreli was arrested by federal agents on Thursday for hedge fund frauds committed while he was at MSMB capital and Retrophin Pharmaceuticals, organizations he founded. Other allegations of fraud against him include routing money from one organization to another to pay off investors in the latter. Shkreli stands accused of running the organizations as a Ponzi scheme and allegedly lied to investors about the profits MSMB's fund was attracting.

NBC News reports that Shkreli was released on 5 million bond after pleading 'not guilty' to charges against him. He later took to Twitter on Thursday to announce he was home.

Shkreli courted controversy earlier this year when Turing hiked the price of Daraprim, a drug used by HIV patients, after acquiring rights to it. The price hike was of the order of 5,000 percent.

In an announcement on its website Turing said Ron Tiles would serve as interim CEO.

"We wish to thank Martin for helping us build Turing Pharmaceuticals into the dynamic research focused company it is today, and wish him the best in his future endeavors. At the same time, I am very excited about the opportunity to guide Turing Pharmaceuticals forward. We remain committed to ensuring that all patients have ready and affordable access to Daraprim and Vecamyl," Tiles, who also serves as Chairman of the company's board, said.