Notorious drug kingpin and hedge fund manager Martin Shkreli was sentenced to seven years’ imprisonment today in Brooklyn’s federal court for masterminding a multi-million dollar securities fraud scheme. United States District Judge Kiyo A. Matsumoto also ordered Shkreli, the former CEO of Retrophin Inc., to pay a $75,000 fine and $7.3 million in forfeiture.
Shkreli was convicted by a federal jury in August 2017 on two counts of securities fraud and one count of conspiracy after a trial that lasted six weeks. The court found him guilty of using false representations to defraud investors out of millions, including funds from MSMB Capital Management LP and MSMB Healthcare Management LP.
United States Attorney for the Eastern District of New York, Richard P. Donoghue, emphasized the severity of Shkreli’s actions, stating, “For years, Shkreli told lie after lie in order to steal his investors’ money, manipulate the stock market and enrich himself.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. echoed these sentiments, asserting that Shkreli’s crimes are an ongoing priority for law enforcement. “While we can now close this chapter of our investigation, our efforts continue to uncover and expose all crimes of this nature,” Sweeney said.
The evidence presented at trial revealed that Shkreli executed three schemes to defraud investors, including fabricating performance updates and withdrawing excessive funds from MSMB Capital. The court also signed a Preliminary Order of Forfeiture, allowing the government to seize assets such as Wu Tang Clan’s “Once Upon A Time in Shaolin” album, Lil Wayne’s “Tha Carter V,” and a Picasso painting.
Shkreli, who violated bail conditions by threatening former U.S. Secretary of State Hillary Clinton, is currently incarcerated at the Metropolitan Detention Center. His sentence begins upon completion of his current custody for bail violations.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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