“Pharma Bro” Martin Shkreli sparked a public outcry for hiking the price of a life-saving drug by 5,000%. Prior to that he was ousted at Retrophin, a biotech company he founded, for bilking $11 million from the company. Monday a federal judge held him responsible for the theft:
A federal judge ruled Monday that former drug company CEO Martin Shkreli will be held responsible for $10.4 million worth of financial losses related to his time as head of Turing Pharmaceuticals.
Judge Kiyo Matsumoto rejected Shkreli’s argument that he did not cause any losses for investors because they eventually came out with a profit, Reuters reported. The total losses will likely play a factor in Shkreli’s sentencing on March 9.
Matsumoto ruled Shkreli should not get credit for the money that was repaid to investors because he only returned it after they became suspicious.
Benjamin Brafman, a lawyer for Shkreli, told Reuters he was disappointed by the ruling but hopeful the judge will impose a lenient sentence.
Pharma Bro’s lawyer, Evan Greebel, was also accused of conspiring with Pharma Bro to defraud Retrophin. A jury convicted him of helping “Pharma Bro” defraud investors of Retrophin (RTRX) to help pay outside debts owed by Skhreli:
A former lawyer for Martin Shkreli’s companies might be heading to prison after a jury convicted him of conspiring with the former biotech executive to defraud investors.
Evan Greebel, who advised companies including Retrophin Inc., was found guilty Wednesday of helping Shkreli steal $11 million to pay back investors after the hedge-fund-manager-turned-drug-executive lost their money in risky trades … Shkreli, who was convicted in August of defrauding investors, is being held in prison while he awaits sentencing. He was ousted from Retrophin in September 2014 and went on to found Turing Pharmaceuticals, where he incited public outrage by jacking up the price of a life-saving drug more than 5,000%. Four months later, in December 2015, he was arrested and charged with fraud.
Greebel was accused of conspiring to help Shkreli create sham settlement and consulting contracts to bilk assets from Retrophin to repay losses to the Shkreli-controlled hedge fund. Most of the witnesses from Shkreli’s case also testified against Greebel.
Where Shkreli goes from here or how much time he is required to spend in jail is unknown. He contends the fraud charges were punishment for his refusal to reduce the price of the life-saving drug. At the time presidential candidates Hillary Clinton and Bernie Sanders were campaigning against price-gouging by major drug companies. When Shkreli refused to play ball the fraud charges were brought. That just goes to show – never argue with your parents.