Monday, 16 July, 2018

U.S. judge orders ex-drug executive Shkreli to give up $7.36 million

Drew Angerer  Getty Images Former pharmaceutical executive Martin Shkreli Drew Angerer Getty Images Former pharmaceutical executive Martin Shkreli
Stacy Diaz | 07 March, 2018, 11:04

The decision came four days before a scheduled hearing at which Shkreli faces a potential maximum prison sentence of 20 years.

But because of a ruling last week by Matsumoto, federal sentencing guidelines will suggest a very stiff prison sentence for the notorious former pharmaceutical company executive.

Before being convicted of securities fraud, the "Pharma Bro" received widespread criticism in 2015 while he was CEO of another company called Turing Pharmaceuticals.

Matsumoto revoked his $5 million release bond that month after Shkreli offered his Facebook followers a $5,000 bounty for samples of hair from the former Secretary of State Clinton, a frequent target of his scorn.

Wu-Tang Clan album "Once Upon a Time in Shaolin" that he bought at an auction for $2 million. Almost two years later, just as the entire world was learning to absolutely loathe a pharma man-child named Martin Shkreli, it came out that Shkreli was the guy who forked over $2 million or so for the album.

Prosecutors blasted Shkreli in their court filing on Tuesday, saying the evidence at the trial showed that he used investor funds to satisfy unrelated obligations. She said he may be forced to give up assets such as a Picasso painting and a one-of-a-kind Wu-Tang Clan album if he can not find the money.

Agreeing with arguments by federal prosecutors, U.S. District Judge Kiyo Matsumoto ruled that Shkreli must turn over his interest in so-called substitute assets to satisfy forfeiture requirements for the criminal actions that led to his August 2017 conviction. He also was found guilty of conspiring to manipulate the stock price of another drug company he founded, Retrophin Inc.

Shkreli himself has asked U.S. District Judge Kiyo Matsumoto for leniency at a sentencing set for Friday, writing in a letter to the court, "I was wrong". His counsel argued in a court filing that Shkreli should be given a lenient sentence because his investors eventually made a profit after he paid them in stock and cash from Retrophin.

Matsumoto has already ruled that when Shkreli is sentenced, he will be held responsible for $10.4 million in losses, including all of the money his investors entrusted to his hedge funds.

"That is, the investors were not repaid due to Shkreli's personal generosity but were ultimately remunerated due to Shkrei's continuing crimes", they said.