Shkreli's Wu-Tang Album Could Be Seized by US Prosecutors

Jenna Warner
December 2, 2017

Martin Shkreli might have to hand over his one-of-a-kind Wu-Tang album, and Lil Wayne's "Tha Carter V" if the feds get their way - but that's the least of his problems.

In August, a US jury convicted Shkreli of defrauding investors in hedge funds he ran years before he gained fame for hiking the price of a drug. He is being held in Brooklyn while he awaits sentencing.

Prosecutors said that, after a "diligent" search to locate "traceable assets" without success, they were forced to turn to substitute assets that could be seized to make up the balance.

Shkreli, infamous for hiking the price of a critical drug, Daraprim, was convicted August 4 in an unrelated trial of lying to investors in two hedge funds he used to run. The former biotech CEO, known for provocative online antics, played short excerpts while live-streaming himself in his Manhattan apartment after President Donald Trump's election and his conviction.

Shkreli's attorney, Ben Brafman, said he'll "vigorously oppose the government motion". "Our position is clear". A listing for the album was posted on eBay and allegedly sold for $1 million in September - while Shkreli was in prison - though the buyer was never identified.

Prosecutors say Shkreli's assets subject to forfeiture also include an Enigma code-breaking machine from World War II and an unspecified Picasso. Shkreli later apologized and said he was joking. Prosecutors alleged Shkreli, who was chief executive officer of Retrophin, stole from the company to repay the investors, but he was acquitted of that charge.

Shkreli's trial posed an unusual obstacle for prosecutors in that investors who were defrauded did not lose money.

Other reports by Insurance News

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