© Reuters. Former drug corporation executive Martin Shkreli exits U.S. District Court immediately after becoming convicted of securities fraud, in the Brooklyn borough of New York City

By Brendan Pierson

NEW YORK (Reuters) – The U.S. Bureau of Prisons stated on Friday it was investigating former drug corporation executive Martin Shkreli’s conduct in prison immediately after the Wall Street Journal reported he was nevertheless assisting run his old corporation making use of a contraband cellphone.

“When there are allegations of misconduct, they are completely investigated and suitable action is taken if such allegations are established accurate,” the Bureau of Prisons stated in a statement. “This allegation is presently below investigation.”

The investigation was initial reported by the Journal.

The bureau stated that possessing a contraband cellphone was thought of a extreme offense and could outcome in discipline, like becoming separated from the inmate population and possessing visits restricted. It also stated that possessing a contraband telephone could lead to criminal charges.

Benjamin Brafman, a lawyer for Shkreli, declined to comment.

The Journal reported on Thursday that Shkreli, 35, nevertheless wields considerable influence more than the drug corporation he founded, Phoenixus AG, formerly known as Turing Pharmaceuticals. Shkreli is about 17 months into a seven-year prison sentence for defrauding investors in a preceding corporation.

The FBI has interviewed Shkreli’s associates about his part in the corporation, the Journal stated, citing unnamed persons who had been interviewed. The FBI did not promptly respond to a request for comment.

Shkreli, born in Brooklyn to Albanian immigrant parents, became recognized as the “Pharma Bro” in September 2015 immediately after founding Turing Pharmaceuticals, shopping for the anti-parasitic drug Daraprim and raising its price tag by five,000 % to $750 per pill. In December 2015, he was indicted on unrelated securities fraud charges.

Prosecutors stated he defrauded investors in two hedge funds he ran, MSMB Capital and MSMB Healthcare, schemed to prop up the stock price tag of Retrophin, the drug corporation he founded in 2011. A jury in federal court in Brooklyn located him guilty in August 2017.

He is at Federal Correctional Institution, Fort Dix, a low-safety prison in New Jersey.

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