The “Pharma Bro” who made headlines for unapologetic price-gouging was convicted of unrelated charges on Friday in Federal court.
Martin Shkreli, who received a lot of press attention before, during and after his trial, was found guilty of three out of eight charges. According to the Washington post, the pharmacy executive shook his head in disbelief when the verdicts were read and faces up to 20 years in prison for these convictions.
Neither side could claim a clear, decisive victory in the case, but a visibly stunned Shkreli clearly did not expect the verdicts. He had previously bragged that the prosecutors would owe him an apology when his case was over and he was cleared of all charges.
Why are So Many Following this Case?
Shkreli’s eccentric and over the top personality along with his past history of price gouging led to a high level of interest in his securities fraud case. He was charged with eight counts in all, including securities fraud, conspiracy to commit wire fraud and conspiracy to commit securities fraud. It took the jury five days of deliberation to reach the verdict.
The case was concluded amidst controversy, with prosecutors claiming Shkreli was misleading investors and attempting to cover massive losses. According to Assistant U.S. Attorney Alixandra Smith, Shkreli repeatedly lied about his investments, including claiming to have $40 million invested in a fund when he really only had $300 in capital.
The case was further complicated by investors, some of whom actually made money from Shkreli’s schemes and who testified about their earnings in court. Shkreli’s own reputation and activities made headlines as well, making it difficult to seat jurors for the case. Shkreli appeared in court for about a month, occasionally interacting and engaging, and other times staring off into space for moments at a time.
Strange Behavior in Court Draws Attention
He was heard to whisper “fake news” at reporters and read books and journals during testimony, according to the Washington Post. Shkreli was also admonished several times by Judge Kiyo Matsumoto for his outspoken behavior around jurors and for referring to the prosecutors as “junior varsity”.
Jurors also heard tales of Shkreli’s odd behavior, including sleeping on the floor of his office in a camping setup, threatening letters sent to former employees and other strange instances. Shkreli did not testify on his own behalf, instead taking to Facebook to lampoon the prosecution and provide a running commentary about the case:
“My case is a silly witch hunt perpetrated by self-serving prosecutors. … Drain the swamp. Drain the sewer that is the (Department of Justice.)” Martin Shkreli said on Facebook.
He was unable to post on Twitter, though, because he had been banned the previous year for his outlandish behavior.
The court case came after a 2015 arrest, when Shkreli was charged with looting Retrophin, another drug company and making off with $11 million in assets, which he used to pay back some investors.
“I don’t think it mattered to him — it was just what he thought he could get away with,” said Richard Kocher, who invested $200,000 with Shkreli in 2012. “It was insulting.”
After the close of the case, Martin Shkreli headed home to his favorite setting – his bedroom and his cats, to await sentencing. He predicted to Time magazine that he would likely get probation, and stated that he was not expecting to receive jail time.
According to Rolling Stone, Shkreli spoke with reporters after the verdict, stating “We have some work to do” after the three “guilty” counts. “This was a witch hunt of epic proportions and maybe they found one or two broomsticks,” Shkreli continued, before heading home to await sentencing.
Why did one fraud case draw so much media attention? The strange behavior and reputation of the defendant, coupled with his history of making headlines by increasing the cost of life saving drugs to levels that made them inaccessible to average consumers both played a role. The media is sure to continue following this story as it concludes, with Shkreli’s odd behavior and statements playing a key role in news stories and headlines around the globe.
Regards,
Ethan Warrick
Editor
Wealth Authority
