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Hedge Fund Scammer’s Wu-Tang Clan Album Sold
The United States has sold the only copy of the Wu-Tang Clan album ‘Once Upon a Time in Shaolin’ (the ‘Album’) that was forfeited by convicted hedge fund manager Martin Shkreli. The sale was made to satisfy a $7.4 million forfeiture money judgment against Shkreli, who was convicted of securities fraud and sentenced to seven years’ imprisonment in 2018.
According to Acting United States Attorney Jacquelyn M. Kasulis, the sale of the Album is a significant milestone in the efforts to hold Shkreli accountable for his crimes. ‘Through the diligent and persistent efforts of this Office and its law enforcement partners, Shkreli has been held accountable and paid the price for lying and stealing from investors to enrich himself,’ Kasulis stated.
Shkreli was the founder and managing member of hedge funds MSMB Capital Management LP and MSMB Healthcare Management LP, and the former Chief Executive Officer of Retrophin Inc. He was convicted in August 2017 of two counts of securities fraud and one count of securities fraud conspiracy after a six-week trial in federal court in Brooklyn.
The Album, which includes a hand-carved nickel-silver box and a leather-bound manuscript containing lyrics and a certificate of authenticity, was marketed as ‘both a work of art and an audio artifact’ when Shkreli purchased it in 2015. In September 2017, just weeks after his conviction, Shkreli attempted to sell the Album through an on-line auction.
Proceeds from the sale of the Album will be applied to satisfy the outstanding balance owed on the $7.4 million forfeiture money judgment. The contract of sale contains a confidentiality provision that protects information relating to the buyer and price.
Assistant United States Attorneys Laura D. Mantell and Claire S. Kedeshian of the Asset Recovery Section in the Office’s Criminal Division handled forfeiture matters related to Shkreli’s sentence. Acting U.S. Attorney Kasulis and Assistant United States Attorneys Alixandra E. Smith and G. Karthik Srinivasan defended his conviction and sentence on appeal.
The U.S. Marshals Service and the Department of Justice’s Civil Division, Commercial Litigation Branch also assisted in the sale of the Album. The U.S. Supreme Court denied Shkreli’s request for further review of his conviction and sentence in 2019, paving the way for the sale of the Album.
Shkreli’s conviction and sentence were affirmed by the U.S. Court of Appeals for the Second Circuit in July 2019. The Album was seized by the government and sold to satisfy the outstanding balance owed on the forfeiture money judgment.
The sale of the Album marks the end of a long and complex process to hold Shkreli accountable for his crimes. The U.S. Attorney’s Office in the Eastern District of New York has worked tirelessly to ensure that Shkreli pays the price for his actions.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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