Most here will recall that we have closely followed the criminal travails of Martin Shkreli for over 12 years -- mostly at another property of ours -- and updated, from time to time here, as well. Today's developments will mean he is essentially completely broke -- again, at a minimum. [All his stock trades in the life sciences will be forfeited, without accounting for any potential offsetting losses.]
Moreover, as I directly and clearly predicted several times (see here), the FTC has had enough of his violating his lifetime pharma bans. They have sued him in front of USDC Judge Cote in Manhattan -- for contempt of court, overnight. Here's the 42 page memo of law -- supporting the short motion in full -- and a bit from CNBC (interspersed with snippets from the FTC memo of law):
. . .In addition to the FTC, the states that joined Tuesday’s court filing are New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia.
The filing asks the judge to order Shkreli’s sister, Leonora Izerne, and his “significant other, Chelsea Voss,” to preserve all evidence relating to potential violations of the injunction against Shkreli because both women “appear to have assisted or be assisting Shkreli in violating the Permanent Injunction. . . .”
“After a full trial, the court found that Martin Shkreli’s conduct drove up prescription drug costs for American patients and blocked the entry of lower-cost generics,“Daniel Guarnera, director of the FTC’s Bureau of Competition, said in a statement on Tuesday.
The motion alleges that, while livestreaming his trades in pharmaceutical industry stocks, Shkreli told his viewers “I’m showing you how to trade and invest in biotech.” The motion further alleges that, in another livestream, Shkreli confessed his “magic trick”: “It doesn’t matter what trades I make because I can always find a couple of biotech stocks to smoke.” As alleged in the motion, Shkreli used his livestreams to wage multiple public campaigns to short certain pharmaceutical company stocks based on his prediction that their key clinical trials would fail.
In their contempt filing, the FTC and its co-plaintiff states ask the court for an order to show cause why Shkreli should not be held in civil contempt for violating the lifetime ban imposed by the court and ultimately to issue civil sanctions to force Shkreli to comply with the terms of the court’s 2022 injunction.
In September 2024, Shkreli bragged to his viewers that “[t]he last time I shorted a stock, I made $20 million bucks, it was called Vital Therapies . . . . I made a similar amount of money in Celadon. I mean, you can look at my track record of public shorts. . . . It’s very good in biopharma only.” In September 2025, Shkreli declared himself “the GOAT of binary events. . . .”
“When judgment is entered by a court, whether it’s a settlement or an order following a trial, defendants must fulfill their obligations,” Guarnera said. “Today’s action should serve as notice that the FTC will not hesitate to enforce violations of court orders. . . .”
Finally, "because Shkreli’s sister, Leonora Izerne, and significant other, Chelsea Voss, appear to have assisted or be assisting Shkreli in violating the Permanent Injunction (by, for example, or funding Shkreli’s trading), we ask the Court to instruct Izerne and Voss as well as Shkreli to preserve all evidence relating to potential violations of the Permanent Injunction. . . ."
Welp. Yeh -- the guy simply is incapable of believing that the laws we all agree to live by. . . actually apply to him. They do -- and if he's not very careful now -- he's likely to be going back to jail.
नमस्ते






























