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US court sentences Martin Shkerli the "pharma bro " for 7 years for defrauding investors

Team SoOLEGAL 12 Mar 2018 2:05pm

US court sentences  Martin Shkerli the

New York :Pharma bro' Martin Shkreli was sentenced to 7 years in prison by US District judge  Kiyo Matsumoto in fededral court,in  Brooklyn,New York on the charges of  misleading investors about key details and the dismal financial market performance of the MSMB Capital and MSMB Healthcare hedge funds that he operated.
Shkreli also was convicted last August of conspiring to fraudulently manipulate stock shares of Retrophin, the pharma company he created after both hedge funds effectively collapsed.Evidence at trial revealed that Shkreli had used stock and cash from publicly traded Retrophin to pay back the duped hedge-fund investors, who all ended up getting more than they had originally invested.

As part of conviction he has been fined $75,000 and further has been ordered to forfeit nearly $7.4 million to the federal government.He drew widespread criticism for raising the price of the drug Daraprim by more than 5,000 percent when he gained control of  the pharma company then known as Turing Pharmaceuticals.

"The one person to blame for me being here today is me," a choked-up Shkreli told a judge before she imposed the prison term in Brooklyn, New York, federal court.

"Not the government. There is no conspiracy to take down Martin Shkreli."

"I took down Martin Shkreli with my disgraceful and shameful actions."

"This is my fault. I am no victim here," Shkreli said, before breaking down into tears as he promised not to let his lawyer Benjamin Brafman down in his efforts to contribute to society.

"Do not feel bad for me," Shkreli told a packed courtroom that included supporters and family members, many of whom had written letters asking Judge Kiyo  to spare him from a harsh sentence.

And he had a message for the investors he duped: "I am terribly sorry I lost your trust. ... You deserve far better."

"I was never motivated by money," Shkreli said. "I wanted to grow my stature and my reputation."

"I am here because of my gross, stupid and negligent mistakes I made."

The prosecutors wanted 15 years term as  they termed Shkerli dangerous for the society where as the defense wanted maximum 18 month citing Shkreli's intellectual brilliance and altruism toward others less fortunate than himself.

The judge Matsumoto said she had struggled over what to give Shkreli as a sentence.In a lengthy lead-up to announcing her decision, the judge noted Shkreli's upbringing in a household that included an abusive father, his problems with panic attacks, his charitable contributions to individuals and groups, and his talent for picking stocks and for scientific research.

But Matsumoto also detailed Shkreli's years-long series of sophisticated financial deceptions, his foul-mouthed boasts of having threatened to render a former employee and his family "homeless," and his emailed statements from prison saying he would do anything necessary to win a light prison term.

She urged Shkreli to continue teaching inmates math, finance and other subjects, as he has in recent months.

"I do wish you well, Mr. Shkreli," Matsumoto said.

"Thank you very much, your honor," he responded.

Shkreli, who will get credit for six months he has already spent in jail since shortly after his conviction, also was sentenced to three years of probation after his release .

There is no parole in the federal prison system, but Shkreli could be released after having served almost six years, due to credit for good conduct.

A psychological examination of Shkreli performed before his sentencing found that he suffered from generalized anxiety disorder, major depressive disorder and an unspecified personality disorder.

Shkreli also had revealed that he was drinking seven to eight alcoholic beverages per day after he was indicted in the case in late 2015 to deal with his anxiety. He called that "toxic behavior," the judge noted.

After his release into probation, Shkreli will be barred from holding a majority stake in a company, as well as an executive position or directorship of a company.







Tagged: Martin Shkreli   Hedge fund   US Federal Court  
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