Advertisement

Judge finds Martin Shkreli responsible for $10.4 million in losses

By Daniel Uria
Judge finds Martin Shkreli responsible for $10.4 million in losses
Former Turing Pharmaceuticals CEO Martin Shkreli was found responsible for causing $10.4 million in losses in a Ponzi scheme. Photo by John Angelillo/UPI | License Photo

Feb. 26 (UPI) -- A federal judge ruled Monday that former Turing Pharmaceuticals CEO Martin Shkreli cost investors more than $10.4 million in a Ponzi scheme.

U.S. District Judge Kiyo Matsumoto found that Shkreli, 34, lied to investors in a hedge fund to encourage them to put up $6.3 million and lost $4 million belonging to investors from another fund by funneling their money into a drug company he founded, called Retrophin Inc.

Advertisement

Prosecutors argued Shkreli caused between $9 million and more than $20 million in losses.

Shkreli's lawyers argued he caused no loss and hoped he would receive a sentence of 16 months or less, as he paid hedge fund investors their money back and more with cash and stock in Retrophin.

RELATED DeVos launches probe into MSU's handling of Nassar allegations

Matsumoto ruled Shkreli shouldn't receive credit for paying the investors back because he only returned the money after they had become suspicious of the scheme.

"By the time Mr. Shkreli began to funnel money from Retrophin to his MSMB Capital investors, many of those investors, as well as the Securities and Exchange Commission, had detected the fraud," she said.

Shkreli's lawyer, Benjamin Brafman, said he was "disappointed by the ruling but still hopeful that the court will find it in her heart to impose a reasonably lenient sentence."

Advertisement
RELATED U.S. launches $40M effort to fight Russian election meddling

Shkreli is being held in a Brooklyn, New York, federal jail as he awaits his sentencing on March 9.

Matsumoto revoked Shkreli's $5 million release bond in September 2017 after he offered a $5,000 bounty on Facebook for a strand of Hillary Clinton's hair in what he described as a joke.

RELATED Eric Holder sues Gov. Scott Walker for not holding special elections

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement