Shkreli verdict: Guilty on three of eight counts of securities and wire fraud

The charges stem from an alleged Ponzi-like scheme.

Beth Mole – Aug 4, 2017 2:54 pm | 139

NEW YORK, NY - AUGUST 4: Former pharmaceutical executive Martin Shkreli arrives at the U.S. District Court for the Eastern District of New York, August 4, 2017 in the Brooklyn borough of New York City. Jurors are onto the fifth day of deliberations and have not reached a verdict. Shkreli faces eight counts of securities fraud and conspiracy to commit securities and wire fraud. Credit: Getty | Drew Angerer

After nearly five full days of deliberations, a jury has found Martin Shkreli guilty on three charges: two counts of securities fraud and one count of conspiracy to commit securities fraud.

The notorious ex-pharmaceutical CEO was charged with eight counts of securities and wire fraud, stemming from what federal prosecutors described as a Ponzi-like scheme. Prosecutors argued during the five weeks of testimony and examinations that Shkreli defrauded investors of two hedge funds, which he managed. They also claimed Shkreli siphoned millions from a pharmaceutical company he founded, Retrophin, in order to cover the hedge fund losses. Shkreli, most infamous for dramatically raising the price of an anti-parasitic drug by more than 5,000 percent, was arrested and charged in December of 2015. He faces up to 20 years in prison.

Shkreli’s legal team, headed by Benjamin Brafman, argued during the trial that although Shkreli didn’t “look great” on paper, he was a “brilliant mind” who lacked intent to defraud investors.

In statements following the verdict, both sides seemed pleased.

Speaking to reporters, Shkreli said:

This was a witch-hunt of epic proportions and maybe they found one or two broomsticks. But at the end of the day, we’ve been acquitted of the most important charges in this case and I’m delighted to report that.

Brafman, too, said he was pleased with the verdict—90 percent of it, at least. He echoed Shkreli’s relief at a ‘not guilty’ verdict on the count of conspiracy to commit wire fraud, which he called the “money count” related to whether Shkreli defrauded Retrophin. Brafman added that they would pursue appealing the guilty verdicts and push for no jail time.

According to CNBC, US Attorney Bridget Rhode said in separate statement: “We’re gratified as we stand here today at the jury’s verdict… Justice has been served.” She noted that this fall her team will bring their case against Shkreli’s co-defendant and former counsel, Evan Greebel, who was charged with one count of wire fraud conspiracy. Shkreli and Greebel both fought for—and won—separate trials.

It is unclear when Shkreli’s sentencing will take place, but it won’t be today.