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The fascinating legal argument at the heart of the Martin Shkreli 'Pharma Bro' trial
Source: Washington Post
The fascinating legal argument at the heart of the Martin Shkreli ‘Pharma Bro’ trial
By Renae Merle July 8 at 5:14 PM
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And yet, despite the antics and his attorneys’ acknowledging that Shkreli is an “odd duck,” legal experts say the flamboyant former hedge fund manager is putting on a novel defense that may resonate with jurors.
At the heart of his team’s legal argument is this question: Is his alleged wrongdoing worth a criminal conviction if his investors did not lose money?
Shkreli — who is often called “Pharma Bro” on social media — became infamous for increasing the price of a vital drug used by AIDS patients by 5,000 percent and then publicly lamenting that he didn’t raise it more. But federal authorities say they arrested him because he also lied to his investors about how he was using their cash. None of those investors, however, lost money. Some even made a big profit, largely because Shkreli’s bet on a biopharmaceutical start-up paid off.
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But prosecutors say these handsome payoffs were only possible because of an elaborate shell game in which Shkreli used Retrophin cash and assets to pay off discontented investors in his hedge fund, MSMB Capital. MSMB Capital sustained significant losses in 2011 after an investment by Shkreli went sour. After the faulty trade, one employee testified that Shkreli seemed depressed and sat at his desk with his hoodie up, not speaking.
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By Renae Merle July 8 at 5:14 PM
[font size=1]-snip-[/font]
And yet, despite the antics and his attorneys’ acknowledging that Shkreli is an “odd duck,” legal experts say the flamboyant former hedge fund manager is putting on a novel defense that may resonate with jurors.
At the heart of his team’s legal argument is this question: Is his alleged wrongdoing worth a criminal conviction if his investors did not lose money?
Shkreli — who is often called “Pharma Bro” on social media — became infamous for increasing the price of a vital drug used by AIDS patients by 5,000 percent and then publicly lamenting that he didn’t raise it more. But federal authorities say they arrested him because he also lied to his investors about how he was using their cash. None of those investors, however, lost money. Some even made a big profit, largely because Shkreli’s bet on a biopharmaceutical start-up paid off.
[font size=1]-snip-[/font]
But prosecutors say these handsome payoffs were only possible because of an elaborate shell game in which Shkreli used Retrophin cash and assets to pay off discontented investors in his hedge fund, MSMB Capital. MSMB Capital sustained significant losses in 2011 after an investment by Shkreli went sour. After the faulty trade, one employee testified that Shkreli seemed depressed and sat at his desk with his hoodie up, not speaking.
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Read more: https://www.washingtonpost.com/business/economy/the-fascinating-legal-argument-at-the-heart-of-the-martin-shkreli-pharma-bro-trial/2017/07/08/658507e0-6255-11e7-8adc-fea80e32bf47_story.html
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