Martin Shkreli’s prized Wu-Tang Clan album might end up on a government auction block.

A judge on Monday authorized the federal government to seize rare Wu-Tang and Lil Wayne albums owned by Mr. Shkreli, the former pharmaceutical executive convicted of fraud, if he can’t come up with the $7.36 million he owes the government.

Judge Kiyo A. Matsumoto of Federal District Court in Brooklyn ruled Monday that Mr. Shkreli owes the money to pay back what he made from his fraud.

Mr. Shkreli’s lawyers had argued that he owed nothing.

Judge Matsumoto also authorized the government to seize Mr. Shkreli’s assets, including his one-of-a-kind Wu-Tang album, “Once Upon a Time in Shaolin,” for which he reportedly spent more than $1 million; a Lil Wayne album, “Tha Carter V”; a Picasso painting; his shares in Vyera Pharmaceuticals; and $5 million in an E-Trade account securing Mr. Shkreli’s bond, which makes up “the majority of Mr. Shkreli’s liquid assets,” according to a court filing by Mr. Shkreli’s lawyers.

The government is allowed to access the other property because it showed that Mr. Shkreli had “transferred,” “substantially diminished” or “commingled” the direct proceeds of his fraud, Judge Matsumoto wrote.