Martin Shkreli Found Guilty On 3 Counts, Including Securities Fraud

Sunday, 06 Aug, 2017

Infamous former drug company CEO Martin Shkreli was convicted on three counts of deceiving his hedge fund investors today. Prosecution witness Darren Blanton said on the stand that he invested in Shkreli's hedge fund MSMB Capital after being told the fund was managing $35 million in assets and had an independent auditor, Reuters reported.

That increase sparked outrage from U.S. lawmakers and patients, and earned Shkreli the nickname "Pharma bro".

Brafman said the amount of money Shkreli could be made to surrender would have been much higher if he had been found guilty of ripping off Retrophin, to repay swindled hedge-fund investors.

His lawyer Ben Brafman said he was thrilled by the verdict. He joked that maybe prosecutors "found one or two broomsticks".

For the boyish-looking Shkreli, one of the biggest problems was not part of the case - his purchase in 2014 of rights to a life-saving drug that he promptly raised the price from $13.50 to $750 per pill.

Prosecutors in the five week trial accused Shkreli of repeatedly misleading investors about what he was doing with their money. Whether the investor in question loses or makes money in the process is fairly irrelevant. He was not found guily of five other charges, including conspiracy and wire fraud. That's what I'm afraid of: "not the facts, not the law, not the testimony, but that Martin Shkreli be swept out in the current that surrounds Martin Shkreli everywhere he goes".

According to the courts, Martin Shkreli defrauded investors by claiming that his startup MSMB Capital was worth $100 million when, in reality, the Brooklyn native only had about $330 in the accounts.

Businessman Martin Shkreli, once named the "most despised man in America" at raising costs for basic medications, was discovered blameworthy Friday of two checks of securities misrepresentation and one of trick in a government court in Brooklyn.

A smug-looking Martin Shkreli tried to take a weird victory lap Friday - moments after he was convicted of securities fraud in an alleged $11 million Ponzi-style scheme.

We're delighted in many ways. He's not likely to receive two full decades in prison (and he won't be popular in his new digs), but some people will hope for more than 20 years, given the circumstances of how Pharma Bro made his fortune...

Speaking after the verdict, Shkreli's lawyer acknowledged that his client needs to break his habit of trashing critics. But hey, you've gotta take the wins where you can get them.