An Update On Marty’s Retrophin Arbitration… Thanks To “Brian”

Several comments left yesterday mentioned this… and I was looking through the old PACER files, on Retrophin — existing case numbers — I did not realize / think to search for the motion to compel as a new suit. But it had been filed as a new suit, in Manhattan’s federal district courthouse.

We had no longer expected to be unable to know much about Marty’s arbitration, since it is immaterial to Retrophin, and arbitrations are generally not published as decisions. [See the dated graphic, at right.]

But we do now know it is being heard on June 10-25, 2019. We know it because it appears that Mr. Mulleady has been trying to avoid testifying at the arbitration:

“…The Shkreli Arbitration is scheduled for a final merits hearing for ten days between June 10 and June 25, 2019….

Mulleady was deeply involved… in Shkreli’s sham Retrophin consulting agreements….

The complaint… alleges, among other things, that Shkreli caused Retrophin to enter into settlement agreements and sham consulting agreements that were in fact for the benefit of disgruntled investors in his former hedge funds (the “MSMB Funds”) (and therefore for the benefit of Shkreli), rather than for the benefit of Retrophin; and that Shkreli allocated Retrophin shares connected with a reverse merger to two of his associates in order to gain a personal benefit for himself. The complaint seeks damages of $65 million….

There is much more there — do go read, if you are so inclined. As detailed in this filing, the damages in this matter alone amount to a claim for $65 million, from Shkreli — by Retrophin. [Moreover, in arbitrations, often the losing party (almost certainly Marty) must pay the winners’ attorneys fees — so tack on a minimum of $5 million, to that $65 million.]

So my overall assessment that he owes some $90 million (among all the claims and suits and fines and forefeitures)…. may be on the lower side of reality.

Namaste… and g’night.

To Be Fair… He’s “Incommunicado”, In The SHU — At Canaan…

…and he almost certain to be so, for the next two weeks, in all likelihood — minimum. [He will probably also lose a week, once he arrives at FCI Allenwood, in “processing in” — whether he goes to that joint’s Medium-, or Low- Security wing.]

So he cannot make re-balancing adjustments — not since the end of last week. But if you’d followed Marty’s advice, and bet 100 shares on each of his one percenters, 200 shares on the two percenters, and so on… you would now be out of roughly $69,000…

As the graphic indicates, the long bets are about even with the Dow (a monkey could do that!), but his shorts are getting killed. Even after he adjusted, late last week.

This is due to the fact that he has to pay, in cash, “hard to borrow” fees on most of the short positions, through his broker of choice, E*Trade. Unlike unrealized gain/loss on open positions, the broker charges essentially cash interest, every day, on each open short position. That amount was over $50,000 cash out the door, never to return, on Marty’s about $700,000 at risk.

Primarily, it is his short bet on Merck that is… boning him. Merck announced a $1 billion acquisition — of a very focused immuno-oncology company, this week — and has been rising ever since. In addition, Mr. Frazier essentially won a “FDA preemption” dismissal (on remand) ruling — from the US Supreme Court on Monday — putting the so called “atypical” Fosamax® femur fractures federal product liability class action… in its rear view mirror, without having to pay out perhaps middle hundreds of millions.

Yup. Mr. Frazier is… the bomb.

But Marty hates Merck because Fred Hassan was bumped out of his “rightful” seat [in Marty’s wildly warped world-view], when Merck ate the the poorly managed Schering-Plough — for lunch one day in March of 2009.

Hilarious — so I don’t think Marty would have adjusted — even if he wasn’t in the SHU — and closed his Merck short. [He’s just… irrational there.]

So do ponder that, as you enjoy your long holiday weekend beach-side barbeques, under a warm spring sun… Marty — when accurately tracked — loses money (lots of it) for his investors. And I don’t think he will get a serving of my home-made Genghis Khan’s Mongolian® barbequed ribs (“they conquered all of Asia!”), delivered, into Canaan’s SHU — not this year — not next. And perhaps not for two more, after that…


Marty Is Now “In Transit” — To FCI Allenwood…

At the moment, the applicable BoP database has him in the SHU, at Canaan — like some way-laid Fed. Ex. package… as he awaits a ride to FCI Allenwood.

That could take a week; but he won’t be able to post via surrogates to his blog for about two weeks, then. Has to be processed in, at Allenwood.

He’s probably relieved to be out of Brooklyn MDC, even though the Wu wants its Shaolin back.

Hilarious. Onward!

[U] Well. This Will All Be… Very Droll.

Marty’s surrogates have posted his first of what is supposed to be many “weekly” returns P&Ls — on his mythical portfolio.

The most preciously predictable part of it? His calculations omit entirely the costs he’d actually have to pay, to borrow all those shorted shares, plus the cash margin he’d need (double the entire short portfolio’s size), in liquid assets — in order to maintain his position(s). Just as the able AUSAs in the USDC, EDNY proved — Marty falsifies his investment returns — as ever.

If he did include all the cash costs of his positions — his portfolio would actually now be in the red by a little over 6 percent — not flat, as he claims. See, I agree, Marty — the truth… actually matters.

And on that score, in an immensely humorous way (to me, at least!) — he concludes his Sunday night’s missive, thus:

“…While we’re out settling scores a bunch of my lawyers want to sue the mysterious ‘condor’. This is the guy who has made several websites/blogs about yours truly. I have finally agreed, so look out for that very interesting complaint, soon….”

Charming. Let’s just… skip the preliminaries, shall we? It seems you/your lawyers (via the author of your forthcoming biography) know exactly how to find, and serve me. Bring it on; and I’ll promptly accept service wherever they find me. Just shut up and file already.

All I can say (on the substance) is… I’ll happily see your boys in court (as you’ll still be… right — locked up!).

Of course, I’ll win all my attorneys’ fees from you (for this plainly frivolous and bad faith litigation, based at least in part on the fact that you yourself call it “settling scores”).

Everything on this — and the old KaloBios / Humanigen site was / is derived from public record court filings. So, yeah. Bring it on. And I’ll eviscerate you, in prose, daily — right here — as I do so.

Onward… here’s to an entirely new narrative arc — in Marty’s increasingly irrelevant life-story line: a bitter, and likely broke… teeny, tiny incarcerated felon.

Namaste, Marty.

Your years in prison ought to have helped you — by now, to have realized you need to apologize — to all the people you stole from, and threatened.

You’ll find… I’m the thing that bumps back — when things go bump, in the night.

Should be highly entertaining — even if he doesn’t… chicken out. [Updated late on 5.22.2019: it is clear that (as ever) Marty is all bluster; no bite. It is equally clear he knows exactly who I am, and where to find me, for service of process — or a live phone call. His “lawyers” (the imaginary ones, that is) haven’t peeped. So, so… very… Marty. Tonight, on his original WordPress surrogate blog, he asks for gofundme help — for an incarcerated friend, whose family has been burned out of their apartment. That… I will do, mañana. Onward.]


Marty’s [Surrogate-Curated] Blogspot Prison Site Added Biogen — As A 1% Long Bet — Overnight. Heh.

So I added it — as of market open, this morning, in the appropriate weighting.

Overall, he is down about five per cent as of this afternoon — with the carry costs on his bigger shorts really doing damage to his would-be returns… since they are, in the main… not falling. Heh.

In the same overnight post, Marty seems to acknowledge that the so-called “First Step Act” relief will not be available to him.

He refers to his release date and says almost parenthetically, “unless there is a First Step miracle“. He still is under-counting his remaining months in my experienced view, with or without First Step — but it is clear that a cell phone charge [assuming by now he’s been found culpable for it] would be independent grounds to deny him any credit — and might ultimately add a full year — to his time.

We will see him in 2025, is my experienced view. Perhaps Spring of 2025 — so he will be 44 by then.

And he will have served just about eight and a half years, including the pre-sentencing / post-felony-conviction time — also at Brooklyn MDC — for his HRC threats.

But all of that is assuming he doesn’t get in any more trouble, from here on. And that may be an unwarranted… assumption.

Now you know. Namaste….

This Ought To Be… Um, Entertaining — If Nothing Else…

So… I am thinking more and more that Marty cannot be moved to FCI Allenwood due to space / capacity constraints, up at Allenwood. [So who knows when he will leave the MDC Brooklyn? Mr. Brafman said it might be six months, about a month ago.]

In the meantime, while he is in MDC Brooklyn, he has been able to email out a few blog items, for the surrogates to post. That all led to today’s posting, but he likely chose these stocks — long and short — over the weekend.

So… I have set up two “mock” portfolios — one for his bullish long bets, and one for his bearish short bets. It updates in real-time — well, on a 15 minute delay, during the trading day. It is freeware, afterall.

I weighted each name the way he has stipulated, in even 100 share increments, and I sold short, or bought in the shares and names, as of the open this Monday morning on the NYSE, NASDAQ and around the globe [Sweden and Canada, primarily]. That said… A warning,and a caveat:

THIS IS A SIMULATION. I DO NOT recommend that anyone actually put roughly $700,000 into any of this [perhaps very soon to be more, because his short portfolio is already getting margin calls. Simulated, but that takes new cash capital.]

As we all know — on China trade war lunacy from Trump, the markets tanked today — so we would expect he should be well-ahead on his short bets.

He is not well ahead — he is only “ahead” 2.3% (pre-tax, and unrealized).

And we should expect that he lost money on his long bets — as of tonight, he did — at an about 3.4% loss (also pre-tax, and unrealized).

He has allocated proportionately more money in the bullish long pool, so as of tonight — he has lost about $11,000 — on say $700,000 invested / at risk, before paying the borrow cost, on the short positions.

After paying the borrow costs, he’s down about $30,000 for Monday.

I will update this from time to time.

Namaste — you may see the equity names for yourself, at his in-prison blog, called freeshkreli [dot] blogspot [dot] com.


[U: Video, Below] Marty’s Rejoinder — To Joyner Lucas’s… Spit

Well. Is anyone even remotely surprised? Marty is constitutionally incapable of being criticized — even fairly — without “clapping back”.

Marty (through surrogates) blogged anew, tonight… and he’s plainly heard about (or seen) the verses we mentioned on last Friday.

His not-so clever reply:

“…Joyner Lucas really has to look into deism. No collusion!….”

I guess… I’ll just leave that one hanging — there, in the air….

No comment would suffice; nor really, is one… required. See this at about 2:00 to 2:08: