Here is the full 21 pager, and it solidly nails Marty’s feet to the floor, with railroad spikes.
It is significant that the Probation Department has already concurred with the AUSAs — and agrees with these loss amounts and Guidelines-level enhancements. At a 27 now.
This below was the bit I most enjoyed reading:
“…With respect to MSMB Capital, Shkreli audaciously contends that while that MSMB Capital “did not invest any money in Retrophin, it is clear that the fund’s assets included Retrophin stock” and thus “any subsequent Retrophin payments to MSMB Capital investors were not pay back for a loss, but rather redemptions of the investors’ Retrophin shares.” (Def. Let. at 4). Construing this as an argument for a credit against loss for the distribution of Retrophin stock to MSMB Capital investors in January 2013, it fails both because it is factually inaccurate and because the distribution happened after both the offense was detected by a victim and by a government agency. Shkreli’s support for his argument is based on a single document — the so-called MSMB Capital “balance sheet” that Shkreli provided to attorneys for MSMB Capital investor Darren Blanton in the summer of 2012 which purports to show that MSMB Capital held $3,480,000 in “Level III Securities.” (GX 105-15). This so-called “balance sheet,” which was created by Shkreli in response to Blanton’s repeated requests for a redemption of his MSMB Capital investments (which started in November 2011 and persisted until March 2014, during which period Shkreli repeatedly lied to Blanton about his MSMB Capital investment), was dated April 1, 2012 by Shkreli. (Id.) There was testimony from Blanton at the trial of Shkreli’s co-defendant, Evan Greebel, that Shkreli told Blanton that the “Level III Securities” were shares of Retrophin. (Greebel Tr. 3630). Shkreli now argues that the so-called “balance sheet” and his own statement to Blanton, taken together, are definitive proof that “at least as of April 2012, MSMB Capital and its investors were all Retrophin shareholders” and that consequently prior to Blanton’s complaint to the SEC and “at the time of the wind down email [on September 9, 2012]” MSMB Capital had “approximately $6 million worth of Retrophin stock” which was more than the total amount invested in the fund by investors.” (Def. Let. at 4)….
This preposterous argument, which is premised entirely on the written and verbal lies made by Shkreli in an attempt to forestall Blanton’s attempts at redemption, is directly contradicted by the facts established at trial. First and foremost, the many capitalization tables generated for Retrophin in 2012 — which Shkreli received and revised at various points — make it clear that MSMB Capital did not hold any Retrophin stock either as of April 1, 2012 (the date of the fabricated “balance sheet”) or as of September 9, 2012 (the date of the wind-down email)….
Moreover, in connection with the settlement agreement that Shkreli, MSMB Capital and Merrill Lynch entered into on September 5, 2012 to repay the losses from the OREX trade—the very trade that wiped out all of the assets in MSMB Capital — Shkreli swore under penalty of perjury that MSMB Capital’s “Asset/Liabilities for MSMB Parties as of September 4, 2012” was “$0.” (GX 117-6). Instead, the evidence at trial clearly showed that MSMB Capital didn’t receive any shares of Retrophin until December 3, 2012, when Shkreli simultaneously transferred 75,000 shares of Retrophin to MSMB Capital via a backdated share transfer agreement and revised the capitalization table to show that transfer. (GXs 119-24, 119-25). As a result, Shkreli’s argument that the subsequent distribution of Retrophin shares to MSMB Capital investors in January 2013 should be considered a “redemption” of their investment in the hedge fund fails….
For the reasons set forth above, the government submits that the total loss amount that resulted from Shkreli’s criminal conduct in connection with the four fraud schemes — defrauding MSMB Capital and MSMB Healthcare investors, stealing money and shares from Retrophin and manipulating the price and volume of Retrophin stock—for Guidelines purposes is more than $20 million, and that, when completing the final offense level calculation for Guidelines purposes, the Court should increase Shkreli’s offense level by 20 levels. See U.S.S.G. § 2B1.1(b)(1)(k)….”
Do enjoy the whole thing — well reasoned, and devastating to Marty’s chances. Mr. Shkreli probably now regrets calling these able professionals the Junior Varsity. Actually, he probably doesn’t — he’s just that clue free and delusional.
But he won’t be — after March 2018 — when several long years stretch out before him.