Martin Shkreli

The pharmaceuticals tycoon who sparked public outcry earlier this year when he put up the price of life-saving AIDs drugs by 5000% has been arrested on fraud charges.

Martin Shkreli is accused of fraud relating to a drugs firm he used to run and a hedge fund. Mr Shkreli is currently chief executive of Turing Pharmaceuticals, the company that raised the price of AIDs, but the charges relate to his time at Retrophin and a hedge fund MSMB Capital Management where he was a fund manager.

He was arrested by the FBI and is accused of running a "Ponzi scheme", where he illegally used Retrophin funds to pay off millions of dollars worth of MSMB's debt. Prosecutors say he cheated investors out of $11 million (£7.3m).

US Attorney Robert Capers, said: "Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit."

The US Securities and Exchange Commission has also charged Mr Shkreli with defrauding investors to cover-up his poor investment decisions.

Mr Shkreli's representatives have said he strongly denies the charges and expect him to be "fully vindicated".