When Martin Shkreli, 34, walked out of a Brooklyn federal courthouse after being found guilty of three counts of security fraud, he exhibited a trademark defiance. Calling prosecutor’s efforts a “witch hunt of epic proportion, ” he claimed the “maybe found…
When Martin Shkreli, 34, walked out of a Brooklyn federal courthouse after being found guilty of three counts of security fraud, he exhibited a trademark defiance. Calling prosecutor’s efforts a “witch hunt of epic proportion, ” he claimed the “maybe found one or two broomsticks. The infamous “pharma bro, ” who throughout the trial chided prosecutors and tweeted comments in violation of court orders, may now face 20 years in prison – or could face no jail time at all.
Shkreli and his high-powered lawyer, Benjamin Brafman, expressed glee in press comments immediately following the verdict. Shkreli was convicted on three of eight charges: two counts of securities fraud and one count of conspiracy to commit securities fraud.
Federal prosecutors accused the hedge fund executive of cheating investors out of $11 million between 2009 and 2014, lying to investors about fund performance and using investor capital for personal uses. Shkreli had claimed that investors in his hedge funds MSMB Capital and MSMB Healthcare were ultimately profitable.
After five days of deliberations, the jury, which had focused in part on Shkreli’s intent, decided not to convict on some of the weighty charges, particularly his defrauding a related drug maker.
While the defense expressed joy at the verdict – Shkreli said he was “delighted the jury did his job – the prosecution likewise claimed victory, saying “justice was done.”
A U. S. District Judge in Brooklyn will determine Shkreli’s fate and could factor in his previous criminal record and seriousness of the crime.
Shkreli had made numerous outbursts at the trial, calling prosecutors the “junior varsity” of the legal world among other provocative comments.
The judge has a wide range of options that could lead to a 20-year sentence but is expected to be lighter. Noting the sentencing judge has “enormous discretion” to sentence Shkreli, Brafman was hopeful that the convictions against his client might be considered legally tenuous.
Theoretically, Shkreli could receive no prison time despite the conviction. “we think verdict as it now stands, will permit this court to impose very lenient sentence, ” Brafman said.
A sentencing date has not been established, but court watchers expect it to occur within a month.
After the trial, Shkreli took to YouTube to live stream his thoughts on the trial, saying the jury’s decision was “confused” on count eight and illogical, all while intimating the potential for appealing the verdict. “I don’ t get it, ” he said of the jury verdict, and said they made mistakes. He also said the prosecutor was looking to get famous and mused that the prisons to which he might be sentenced were relatively luxurious, but he said he could receive probation. “It doesn’ t seem like life will change for Martin Shkreli, ever, ” Shkreli said on YouTube after the verdict. “I’ m still one of the richest New Yorkers and that won’ t change.”
