Martin Shkreli steps down as CEO of Turing Pharmaceuticals

Martin Shkreli, chief executive officer of Turing Pharmaceuticals LLC, exits federal court in New York, US, on Thursday, December 17, 2015. Shkreli was arrested on alleged securities fraud related to Retrophin Inc., a biotech firm he founded in 2011. (credit: Louis Lanzano/Bloomberg via Getty Images)

Martin Shkreli, founder of Turing Pharmaceuticals, has resigned as chief executive of the embattled company, effective immediately. The chairman of Turing’s board of directors, Ron Tilles, has been appointed interim CEO, the company announced.

The news comes a day after Shkreli, 32, was arrested by the FBI on securities fraud charges. A seven-count indictment, unsealed Thursday, laid out how Shkreli allegedly set up a Ponzi-like scheme, swindled his former pharmaceutical company, Retrophin, out of more than $11 million, and repeatedly defrauded and lied to investors of two hedge funds he managed.

Shkreli was arraigned in a Brooklyn court yesterday. He pleaded not guilty and was released on a $5 million bond.