The feds say Martin Shkreli should pay up more than $7.3 million in the wake of his securities fraud conviction.
The feds say Martin Shkreli should pay up more than $7.3 million in the wake of his securities fraud conviction — and he can afford to pay up thanks in part to his coveted Wu Tang and Lil’ Wayne albums.
Brooklyn federal prosecutors invoked the hip hop collateral, and a World War II era code breaking machine, in a forfeiture submission filed late Thursday all as substitute assets. The proceeds of any sales of “Once Upon A Time in Shaolin,” “Tha Carter V” and the Enigma machine could all go towards the forfeiture amount, court papers said.
Shkreli bought the only existing copy of Wu Tang Clan’s album for $2 million in 2015. He put it up for an eBay sale in September, but it’s unclear if a $1 million purchase actually went through, according to Bloomberg.
In 2016, Shkreli said he got his hands on Lil Wayne’s long-awaited album. The album still hasn’t gone public.
Prosecution court papers say Shkreli also has a Picasso that could be a substitute asset.
Prosecutors said they were actually going easy on the Pharma Bro with the $7.3 million sum.
“This total amount represents a conservative computation of the proceeds Shkreli personally obtained as a result of his three different securities fraud crimes of conviction,” they said in court papers filed late Thursday.
Back in August, Shkreli was convicted on three of eight counts related to his management of two hedge funds and his pharmaceutical company.
In the filling, prosecutors argued Shkreli should pony up $2.9 million for one securities fraud conviction, $3.4 million for another and $960,000 for a conspiracy to commit securities fraud.
Shkreli, 34, plans to appeal his conviction. The forfeiture amounts are tied to what investors gave Shkreli but during the summer trial his lawyers noted investors ultimately reaped big profits off Shkreli. His lawyers are due to swing back at the forfeiture request later this month.
Shkreli’s scheduled to be sentenced in January, but he’s been locked up ever since Judge Kiyo Matsumoto revoked his $5 million bail in September.
The judge said Shkreli’s Facebook call for a strand of Hillary Clinton’s hair wasn’t harmless, misguided humor, it was solicitation for someone to assault the ex-Secretary of State.
After Shkreli was jailed, his lawyers asked for access to the $5 million once used as collateral to ensure Shkreli came to court. Matsumoto denied the bid.
