Shkreli at court

You would think, Shkreli knows about the 80% fed rule:

"Watching his livestream right now, he's saying it'll most likely be a 1 year sentence but only 4-6 months or so in actual prison (or in his words, "I'll be playing basketball in club fed")"

If you wondered about where he might end up:

"I had a friend go to MN federal prison camp for some white collar stuff. It sounded like a vacation. Tennis courts, elliptical machines, salad buffets, ordering out once a week (subway, Pizza Hut, etc.). Those were the highlights but it sounded super kush. People very rarely got into fights because they would get sent to a shit hole prison. He said there were lots of guys getting out of higher security prisons and mafia type guys for tax evasion and money laundering. Obviously being locked up anywhere would suck but if it had to happen, this is the place to go."
 
I was admittedly wrong here, I was betting on a full acquittal, not a partial. I thought count 7 was what he was likely to be most guilty of, so I was wrong there aswell.

-He won't get much time for the 2x securities fraud charges related to his hedge funds, when none of the investors in his hedge fund lost money, and the averaged walked away with 2-3x, while court records show he only made 30k himself. As as been pointed out, in securities fraud charges the financial loss element of the "victims" is a big factor is sentencing guidelines. I'm not sure how the conspiracy to commit securities fraud in connection with Retrophin is treated.

"I'm delighted with the outcome of the insane witch hunt against me. The government concocted a fantasy world of eight criminal counts connecting nonexistent dots into an elaborate conspiracy encompassing a dozen people. The jury soundly rejected this idiocy, leaving only 3 vacuous charges which 'stuck'.

I am proud of my legal team for all of the hard work which resulted in an acquittal on the serious, 'loss-carrying' charges. A simple reading of the USSG suggests a sentence of "0 to 6 months":

https://www.ussc.gov/sites/default/files/pdf/guidelines-manual/2016/GLMFull.pdf
https://www.ussc.gov/sites/default/files/pdf/guidelines-manual/2015/Sentencing_Table.pdf

As important, I am continuing my wrongful termination litigation against Retrophin. I am seeking more than $50,000,000 in damages and the jury clearly rejected Retrophin and the government's counter-theory . Retrophin and their executives will pay for their treachorous and greedy behavior.

When the government points every resource they have at you and you walk away unscathed, I call that a huge victory. I'm not happy that three charges did prevail against me, but I am confident they will be vacated post-trial. I'm throwing a party tonight to celebrate--hit me up if you are NYC to come.

Finally, I appreciate all of the support from my fans. However, even more than that, I appreciate the foolish hatred from the uninformed. This propels me to succeed--my net worth is at an all-time high, and my new software startup is the most exciting thing I've ever done. Facing little to no jail time and having stood up to the government face-to-face with no fear, I feel like I can do anything.

Thank you,
Martin Shkreli"
 
Last edited:
"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. Justice has been served," said Rohde"

Really? So the guy you wasted years and 10's of millions going after could end up with a sentence of 0-6 months? And the 1x charge( count 7) which the case was built around, and that would have burned him financially , ends with a "not guilty" count.

Would they really have taking on the case in the first place if he hadn't raised the price of Daraprim by 5000%?
 
Macca1 said:
"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. Justice has been served," said Rohde"

Really? So the guy you wasted years and 10's of millions going after could end up with a sentence of 0-6 months? And the 1x charge( count 7) which the case was built around, and that would have burned him financially , ends with a "not guilty" count.

Would they really have taking on the case in the first place if he hadn't raised the price of Daraprim by 5000%?
More...

I admit, I barely, followed the case but with no financial loss for clients it'll be hard to see him made as an example and given 10-20yrs or whatever is possible. Shkreli is one odd dude though as he made weird comments and laughed at his press conference. The Federal Government baffles me in some of these high profile cases as tens of millions were spent on Clemens and Bonds only to get nothing. Even BALCOs Victor Conte is back to a successful nutrition business which he had before BALCO as SI just did an article on the guy. I agree if not for jacking up that drug it would have been some monetary fine and perhaps, a Cohen type ban. I'm not familiar with, a Club Fed, to be so lax in MN, likely Sandstone, as it doesn't have fencing but here it's rehabilitation vs. down south like Oklahoma where they have Federal Prisons built underground and confined 23hrs. per day.
 
Superstar2317 said:
I admit, I barely, followed the case but with no financial loss for clients it'll be hard to see him made as an example and given 10-20yrs or whatever is possible. Shkreli is one odd dude though as he made weird comments and laughed at his press conference. The Federal Government baffles me in some of these high profile cases as tens of millions were spent on Clemens and Bonds only to get nothing. Even BALCOs Victor Conte is back to a successful nutrition business which he had before BALCO as SI just did an article on the guy. I agree if not for jacking up that drug it would have been some monetary fine and perhaps, a Cohen type ban. I'm not familiar with, a Club Fed, to be so lax in MN, likely Sandstone, as it doesn't have fencing but here it's rehabilitation vs. down south like Oklahoma where they have Federal Prisons built underground and confined 23hrs. per day.
More...
A Club Fed is a Club Fed. I knew a guy who ran a stock scam and got time at Big Spring Texas. He said he spent a good part of his day playing tennis with a crooked judge. Came out saying it was the best thing for his game and the food wasn't bad.
 
Shkreli is loving what this trial has done for him - he is optimistic that any prison sentence will propel his wealth & fame into the stratosphere. He even likes the idea of chilling in prison for a while to better focus on getting work done Man, I always thought the Brooklyn boys were tough but Shkreli is takes being an entrepreneur/ gangsta to a whole new level. Shkreli is beyond cool, asking one of the prosecutors to go out on a date.
 
Last edited:
Pekelo said:
So would you give him your money to invest NOW, when we know that he can't trade for shit? That is the real question not that how lucky his investors were...
More...

I'm not sure if you quite realize what Shkreli has been upto in the start up Biotech space. Sure he has blown up funds, with crazy short plays( 80mil short in OREX, ends in a 7mil realized loss) But you have to realize he's like a looter/ price gouger- His position sizing can be so big relative to the company's float/ ave traded volume, that he can push around thinly traded stocks in either direction. He's like the ultimate penny stock guru, expect he only trades biotech, has 10x the capital of any other penny stock guru, and has intimate knowledge of the company's he's touting. If he's buying in, he's not necessarily taking a trading position, he could be buying in to take control of the company. The funds he used to secure his bail were from the 45 million he had in an Etrade account. He had so much in his Etrade account because he built up a 50% stake in KaloBios, when this was announced, the next day, the stock was up 600%.
 
"Finally, let me add that MSMB (my hedge fund) investors made 3x-5x their investment while I made $31,500 over four years for my excruciating work. I did not lie to investors and followed the rules at all times. There are certainly things I would have done differently but hindsight is difficult to apply to running a business.

Note that those returns did not include any settlements or consulting agreements that the government incorrectly surmised were illegal (thank you, jury). If those are included, some investors returned 5x to more than 10x.

I am delighted that this jury proved I have not made one penny illegally and none of my investors lost money. The most someone can accuse me of is exaggerating, being too sanguine and generally being too aggressive. I'm far more conservative, a little older and a little wiser, now 7 years later. I am proud of what we achieved with MSMB, where I often would replace any trading losses with my own capital. If you know anything about Wall Street, usually the opposite is happening.

Thanks again for your support and open-mindedness. This must be the first securities fraud trial ever where the "victims" of the fraud also noted it was their best investment ever."

-Martin Shkreli
 
Macca1 said:
from the 45 million he had in an Etrade account.
More...

Just to be factual, by the time he had to pay the bonds, the value of his stocks were down to 5 million (a 90% drop), that is why his lawyers asked for a bond reduction, because they wanted to get paid too, and there was no money left, beside the 5 mill....
 
You must log in or register to reply here.
Back
Top