Published: Sat, August 05, 2017
Economy | By Melissa Porter

Pharma Bro Martin Shkreli Found Guilty on 3 of 8 Counts

Pharma Bro Martin Shkreli Found Guilty on 3 of 8 Counts

Martin Shkreli was convicted of fraud by jurors in a USA court in Brooklyn on Friday, in a blow for the controversial former drug company and hedge fund executive, who had forcefully and repeatedly proclaimed his innocence.

Jurors found him guilty of two counts of securities fraud and one count of conspiracy.

A Brooklyn federal jury on Friday convicted controversial former pharmaceutical executive Martin Shkreli on charges of defrauding investors in his ailing hedge funds and conspiring to control the stock price of his former drug company Retrophin Inc.

"This is not a case where anybody was defrauded!", Shkreli lawyer Benjamin Brafman shouted in the courtroom during his closing argument, according to CNBC.

Pushing back against the defense's argument that no fraud occurred because all the investors were repaid in full and reaped handsome profits, Kasulis told jurors, "It doesn't matter if you pay people back years later after you've stolen their money..."

"Prosecutors say Shkreli misled investors about the size and performance of MSMB Capital Management, claiming that its returns were '+35.77% since inception' - when the fund had actually lost 18 percent".

Shkreli (sort-of) endorsed Trump during the 2016 election, but later clarified he would vote for him "with a gun to his head".

The charges are related to Shkreli's operation of a pair of hedge funds, MSMB Capital and MSMB Healthcare.

"I don't think it mattered to him - it was just what he thought he could get away with", said Richard Kocher, a New Jersey construction company owner who invested $200,000 with Shkreli in 2012.

Shkreli himself scoffed at prosecutors online, calling them "junior varsity" and referring to his trial as "a silly witch hunt perpetrated by self-serving prosecutors".

Brafman framed his client as an oddball genius who ultimately made his investors richer. He faces up to 20 years in prison once sentenced.

That mission was the start-up pharmaceutical company Retrophin, reportedly founded to find a cure for rare disease called myotubular myopathy.

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