New York, NY(Law Firm Newswire) November 7, 2017 – Former pharmaceutical executive and hedge fund manager Martin Shkreli was convicted of conspiracy to commit securities fraud and two counts of securities fraud. He is facing a maximum of 20 years in prison.
A Brooklyn jury delivered the guilty verdicts following a securities fraud trial that lasted a month. Shkreli, 34, was acquitted on five other charges. The case concerned his mismanagement of two hedge funds.
“The federal government is known to aggressively investigate and prosecute securities fraud,” commented Peter Brill, a New York criminal defense attorney with Brill Legal Group, who is not involved in the case. “Besides the potential of a lengthy prison sentence and fines, any allegation of securities fraud can damage your professional reputation. With the stakes so high, it is essential to seek experienced representation to fight the charges.”
Prosecutors said Shkreli used a Ponzi-like scheme to mislead investors at MSMB Capital and MSMB Healthcare about how well funds were doing. He was accused of cheating them out of over $11 million from 2009 to 2014. As founder and CEO of Retrophin, Shkreli used finances from the pharmaceutical company to pay off investors and other personal debts.
Shkreli is scheduled for sentencing on Jan. 16, 2018. He is currently being held at the Metropolitan Detention Center in Brooklyn. A federal judge denied a request to return Shkreli’s $5 million bond after he offered $5,000 to his online followers for procuring a strand of Hillary Clinton’s hair.
Shkreli’s attorneys claimed he was an oddball genius who never meant to defraud anyone. They tried to shield the jury from his disruptive in-court behavior, such as belittling prosecutors. Shkreli also discussed the case on YouTube.
Shkreli, known as “Pharma bro,” became infamous two years ago for raising the price of lifesaving pills used by AIDS patients. He defended the 5,000 percent price hike, citing the need for his pharmaceutical company to profit from the drug.
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