'Pharma Bro' Martin Shkreli guilty for fraud secuities conspiracy

Javier Howell
August 6, 2017

This may be goodbye for Martin Shkreli. The verdict will be read Friday afternoon.

The drug company CEO is accused of draining funds from his company Retrophin in order to pay back investors from his failed hedge funds, MSMB Capital Management and MSMB Healthcare.

That increase sparked outrage from USA lawmakers and patients, and earned Shkreli the nickname "Pharma bro". As with Madoff, Shkreli's reputation apparently inspired investors, who wanted to put money into the young wiz's hedge fund.

Shkreli's high-powered attorney, Benjamin Brafman, clung to the acquittal on that count as a victory that he said ultimately could mean that Shkreli would serve little to no prison time.

"They found him unusual".

The charges against Shkreli were unrelated to his decision, while CEO of Turing Pharmaceuticals, to raise the price of the drug Daraprim from $13.50 per pill to $750 per pill in 2015.

Wearing a short-sleeved dark polo shirt and khaki jeans, Shkreli flashed his trademark smile as he and his lawyers held an off the cuff news meeting outside the courthouse.

Although he was found guilty, Shkreli appeared to celebrate that he was let off on five of the eight counts.

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

Shkreli was all smiles outside Brooklyn federal court, despite facing up to 20 years on charges that he lied to investors and attempted to manipulate the price of Retrophin shares on the stock market. "And if I'm acquitted, I get to f- Lauren Duca", calling it "just my fantasy".

"There's one statement that's most important and that's the jury's statement: guilty on those counts", said Acting U.S. Attorney Bridget Rohde.

Martin Shkreli was convicted of fraud by jurors in a United States court in Brooklyn on Friday, in a blow for the controversial former drug company and hedge fund executive, who had forcefully and repeatedly proclaimed his innocence.

Shkreli faces up to 20 years in prison, but legal experts expect a lesser sentence, according to the Washington Post.

"I think we are delighted in many ways", Shkreli said after the verdict.

Prosecutors charged Shkreli with eight counts of fraud for a Ponzi-like scheme, and the case kicked off at the end of June. He said that Shkreli never meant to defraud anyone, and called him an "honest kid".

Matsumoto postponed setting a sentencing date, after Brafman noted that the defense also will be filing a motion asking her to overturn the jury's guilty verdicts.

Other reports by Insurance News

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