anthony mason reports. >> reporter: martin shrekli was shrouded in a hoodie when agents arrested him at his new york apartment. the 32-year-old ceo accused of a securities trifecta of lies, deceit, and greed. >> essentially ran his companies like a ponzi scheme, where he used each subsequent company to pay off defrauded investors from the prior company. >> reporter: u.s. attorney robert capers said shkreli in a 2011 e-mail that his hedge fund msmb, had returned 43% in just two years. in fact, the s.e.c. says, shkreli's fund had suffered $7 million in trading losses and had virtually no assets. a second hedge fund, msmb health care, also allegedly deceived investors, and the s.e.c. says shkreli then used retrophin, a pharmaceutical company he started and took public, to pay off the mounting losses in his funds. >> he abused that power and the company assets to pay off his own personal debts. >> reporter: the charges do not include his actions at turing pharmaceuticals, where in september, shkreli brashly raised the price of daraprim, a drug that fights a rare parasitic infection, from

anthony mason reports. >> reporter: martin shrekli was shrouded in a hoodie when agents arrested him at his new york apartment. the 32-year-old ceo accused of a securities trifecta of lies, deceit, and greed. >> essentially ran his companies like a ponzi scheme, where he used each subsequent company to pay off defrauded investors from the prior company. >> reporter: u.s. attorney robert capers said shkreli misled his investors, boasting in a 2011 e-mail that his hedge fund msmb, had returned 43% in just two years. shkreli's fund had suffered $7 million in trading losses and had virtually no assets. a second hedge fund, msmb health care, also allegedly deceived investors, and the s.e.c. says shkreli then used retrophin, a pharmaceutical company he started and took public, to pay off the mounting losses in his funds. >> he abused that power and the company assets to pay off his own personal debts. >> reporter: the charges do not include his actions at turing pharmaceuticals, where in september, shkreli brashly raised the price of daraprim, a drug that fights a rare parasitic infection,

martin shrekli told the wall street journal.. quote: "quite frankly, my arrest is not something i and definitely not something i deserve given the facts." federal authorities say shkreli ran his two former companies like a ponzi scheme. he was also trashed by many around the country when he jacked-up the price of a life saving hiv drug. if convicted.. shkreli faces 20- years in prison. texas authorities are widening their search for a teenager.. who was spared prison time for his infamous affluenza defense.. after killing 4 people in a drunk driving accident. authorities believe ethan couch ran away with his mother. investigators have received hundreds of tips -- but still, no arrest. abc's elizabeth hur reports. this video posted on twitter.. showing ethan couch at a booze party standing near a beer pong table although not seen drinking.. according to authorities.. may have prompted the texas teenager to skip his probation hearing and turn into a wanted fugitive.. ((sot)) sheriff "i believe he felt that the other shoe was gettin

martin shrekli is speaking out for the first time since his arrest. he told "the wall street journal" he was arrested because of "a social experiment and teasing people on the internet." federal authorities say he ran his two former companies like a ponzi scheme. earlier today, we learned the 32- year-old was terminated from one of his companies. you'll remember he gained national attention... after jacking up the price of a life- saving drug. if convicted, shkreli faces 20 - years in prison. a big penalty in the professional sports world -- fifa has banned its president, sepp blatter from all soccer-related activities for eight years. michel platini... who is the president of u-e-f-a... europe... was also barred from the sport for nearly a decade. the men had been suspended pending the outcome of an investigation by an ethics committee. it centered on a two-million-dollar payment that blatter authorized to platini in 2011 if you own or drone...or got one for anyone for christmas... you can't fly it until you do one thing. starting today, you must reg

. >> pharma's bad boy, martin shrekli, a former hedge fund manager was arrested on fraud charges. this indictment unsealed today. what did we learn about what is alleged he had done? this is not related to the price hikes. >> the great irony of the story is this has nothing to do with what he is famous for, jacking up the price of life-saving drugs under some of the companies that he runs. but it is essentially a web of lies and deceit. prosecutors are alleging on how he managed a group of hedge fund, that he was running a few years ago and basically lying to investors as straight up security fraud. and lying to investors on simple things like, did they have an auditor, how much money the hedge fund had, what the returns were? >> you have this product in the eastern district. the sec also releasing an indictment in the civil suit. >> often in these cases, the sec will do a parallel civil complaint. the sec case is interesting because as it usually happens when you have fraud charges against a public company, some of his companies are public and some are private. the ones he has wo

. >>> a former pharmaceutical company ceo martin shrekly says allegations against him and without meritad an interesting live stream less than a day after his arrest. abc news reporter mara 65 chavea campo. >> i can't talk about allegations, can't answer questions about that whatsoever. >> reporter: the disgraced hedge fund ceo, so-called bad boy of pharmaceuticals, turning heads. >> good to be back. >> reporter: live streaming himself on youtube friday less than 24 hours after getting out of jail on $5 million bail. >> sorry i couldn't live stream yesterday. had a lot going on. >> reporter: he sure did. on friday the 32-year-old resigned from his post as ceo of touring pharmaceuticals. the company that blew up the price of a life-saving drug by 5,000%. the $750 per tablet. ska relevantly was arrested on unrelated fraud charges. >> essentially ron his company like a ponzi scheme. >> reporter: those allegations didn't appear to faze him. >> you've been super supportive. >> reporter: yesterday on his live stream ska relevantly was seen talking on the phone, playing internet games, strummi