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Martin Shkreli hit with additional charge in fraud case

Federal prosecutors on Friday filed an additional charge in the fraud case against Martin Shkreli, the bad boy ex-pharmaceutical executive.

Prosecutors and defense lawyers said last month that he could be hit with a new count. Asked for comment on Twitter, Shkreli directed CNBC to his lawyer.

In a statement, Shkreli lawyer Ben Brafman said the superseding indictment "adds nothing of value to the government's case that still relies on a flawed theory."

Martin Shkreli, former Chief Executive Officer of Turing Pharmaceuticals LLC, exits federal court on May 3, 2016 in the Brooklyn borough of New York City.
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Martin Shkreli, former Chief Executive Officer of Turing Pharmaceuticals LLC, exits federal court on May 3, 2016 in the Brooklyn borough of New York City.

Shkreli was most recently in court May 3. He already was due to return to Brooklyn federal court in the case Monday.

It is not clear if he will be arraigned on the new criminal charge then, or on another day. He is free on a $5 million bond.

A spokeswoman for the U.S. attorney's office in the Eastern District of New York declined to comment.

Shkreli has said he is innocent of the criminal case, in which prosecutors claim he looted his former pharma company Retrophin to pay off investors he was suspected of previously defrauding in a hedge fund he ran. His former lawyer Evan Greebel is a co-defendant in the case.

The new charge is a conspiracy to commit securities fraud count related to unrestricted securities of Retrophin. Prosecutors allege Shkreli and Greebel defrauded potential investors "by concealing Shkreli's beneficial ownership and control of Retrophin's unrestricted or free shares."

It exposes Shkreli to additional prison time.

Greebel's lawyer Reed Brodsky declined to comment.

Shkreli gained notoriety last year after raising the price of a drug used to treat a parasitic disease called toxoplasmosis by more than 5,500 percent as CEO of Turing Pharmaceuticals, the company that he founded after Retrophin's board ousted him. The price of Daraprim jumped to $750 per pill from $13.50 per pill.

Although the price hike drew widespread outrage, it had nothing to do with the criminal charges that were subsequently lodged against him.

In February, Shkreli refused to testify before a congressional committee investigating drug price increases, citing his Fifth Amendment right against self-incrimination.

Correction: Evan Greebel is a co-defendant in the case. An earlier version misspelled his name.