'Pharma Bro' Martin Shkreli Found Guilty

'Pharma Bro' Martin Shkreli Found Guilty

As securities fraud trials go, Shkreli's case was comparatively unique. As he spoke, Shkreli smiled and cocked his head quizzically in mock confusion.

Also chiming in after the verdict, Lauren Duca, a freelance journalist whose TeenVogue opinion piece critical of President Trump caught the attention of Shkreli.

On his YouTube stream, Shkreli vowed to appeal the decision and said he thought the eighth charge will likely be dropped eventually.

Former drug company executive Martin Shkreli and attorney Benjamin Brafman exits U.S. District Court after Shkreli was convicted of securities fraud, in the Brooklyn borough of New York City, U.S., August 4, 2017.

Speaking to reporters outside the court, the entrepreneur said that he felt vindicated by the fact that he had been exonerated of the charges he considered more serious.

Shkreli called the prosecution "a witch hunt of epic proportions". "They may have found some broomsticks".

But acting United States Attorney Bridget Rohde, whose office prosecuted Shkreli, said, "We're gratified as we stand here today at the jury's verdict".

No sentencing date was set. In order to cover his behind, Shkreli created the other hedge fund, MSMB Healthcare, and founded Retrophin, according to the complaint, "so that he could continue trading after MSMB Capital became insolvent and to create an asset that he might be able to use to placate his MSMB Capital investors".

Shkreli was convicted of only three out of eight counts. After losing a bunch of money quickly-and investing in his own pharmaceuticals company, Retrophin-Shkreli continued to send out false statements to investors claiming they were making money. At one point, Brafman noted the cruel underlying irony of the entire proceeding: Every MSMB investor who testified during the trial had previously struck a deal with Shkreli to get their money back through a combination of cash and shares in Retrophin - at a profit. "It's that there's something wrong with Martin Shkreli". His chances of acquittal seemed to rise as the days of deliberations ticked on.

When the verdict came in Friday afternoon, an outpouring of commentary ensued. The 34-year-old "Pharma Bro" is best known for raising the price of a life-saving drug by 5,000 percent.

The fraud charges are unrelated to the drug price hike, and have to do with a Ponzi scheme he ran between 2009 and 2014 in which he bilked investors out of a total of $11 million. He is facing a maximum prison sentence of 20 years, but it is possible that he would receive a lesser punishment because he is a first time offender. The seven-woman and five-man jury began deliberating on July 31, and after asking the judge for just a few clarifications on the law on August 1, they were relatively quiet until reaching the verdict.

They got the case Monday and were still grappling with it Friday in New York City.

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