Published: Sun, August 06, 2017
Markets | By Terence Owen

"Pharma Bro" Has Been Convicted


Infamous former drug company CEO Martin Shkreli was convicted on three counts of deceiving his hedge fund investors today.

Shkreli was ultimately guilty of two counts of securities fraud and another count of conspiracy to commit securities fraud. He had been charged with securities fraud, conspiracy to commit securities fraud and conspiracy to commit wire fraud. Following the verdict, Shkreli told reporters, "This was a witch hunt of epic proportions".

A namesake of "Pharma bro" Martin Shkreli appeared in the same courtroom in NY with the same judge on Friday. As he spoke, Shkreli smiled and cocked his head quizzically in mock confusion.

Most federal felons don't do a livestream on YouTube an hour or so after hearing a jury find them guilty. Prosecutors had a different take.

When the first guilty verdict was delivered, Shkreli looked to his right with a surprised smirk.

Amid shutting contentions, Assistant U.S. Lawyer Jacquelyn Kasulis said the four-week trial had "uncovered Shkreli for who he truly is - a conman who stole a large number of dollars".

Prosecutors said Mr. Shkreli eventually paid investors back with stock or cash from Retrophin by having them sign settlement or consulting agreements with the company.

"Who lost anything? Nobody", Brafman said in his closing argument. The infamous " pharma bro", who throughout the trial chided prosecutors and tweeted comments in violation of court orders, may now face 20 years in prison - or could face no jail time at all. Matsumoto, the judge, still has the discretion to send Shkreli to prison for several years, he said.

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Shkreli also opened up a new Twitter account following the verdict.

Poking fun at another of Shkreli's outlandish actions - paying a reported $2 million for the lone copy of a Wu-Tang Clan album - the online news site Mashable tweeted that fans of the hip-hop act "everywhere rejoice".

Defense attorneys argued that Shkreli's investors were repaid, meaning he's already made reparations.

After the conviction, Shkreli said that he was he was glad to be exonerated on numerous charges and "we're delighted in many ways". Interestingly, the three charges relate to defrauding investors in two hedge funds and in Retrophin Inc. He joked that maybe prosecutors "found one or two broomsticks". They found him weird.

The third charge wasn't good for him: "Guilty".

"We're not 100 percent pleased, but we're 90 percent pleased", Brafman added.

Shkreli also shouted profanities and said "F**k "Pharma Bro" ..."

In the case of MSMB Capital Management, for instance, Shkreli claimed to have made returns of 35.77 percent since its inception, when in reality the fund was actually down 18 percent.

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