Jim Comey Hangs With… Ghostface Killah… PRICELESS!

Do go read it all — and see the photos! This is great theater, courtesy Complex.com:

On Tuesday, Ghostface shared a photo of himself and Method Man posing with the former FBI director, smiling ear to ear. The rapper captioned the Instagram post: “Me and my brother… Workin’ on getting that album back from the feds….”

There you have it — the former head of the FBI hangin’ with… Wu-!

Whodathunkit!? Or… Wu-dathunkit?!

That’s all I’ve got…. G’Night!

[U] Marty Has… “Left The Building”: Credit BostonBorn66 — For This Scoop!

In truth — I had been regularly checking the federal Bureau of Prisons data-base, to monitor his whereabouts — even though I already well-knew (from experience) that it might take up to a week to ten days, for the roster-list to update, with a new location.

But I also knew that he was due to be moved, based on general timelines, in my prior cases. Overnight, “BostonBorn66” graciously shared (via personal knowlege) that he is not housed in the Brooklyn MDC, any longer. And Christie Smythe has confirmed, as a second source, that he is indeed, in transit.

This is one of the more cruel aspects of incarceration in America: it may be a week or more, before even his family knows his whereabouts — same even for his lawyers.

In spite of my partially-whimsical headline, and graphic — I genuinely want him to remain safe. . . and based on the transit of others, I know that this is a vexing and potentially very dangerous time. [I suppose he is in less danger than a snitch or sexual predator though. . . .] Prisoners are. . . exposed — when they are in transit; less so when on. . . lockdown.

So let us hope the federal BoP website is updated shortly — though as I said before — he may make an interim stop, for a few weeks, before reaching his final home.

Stay tuned.

Since His 15 Minutes Are (All But) Over… I’ll Run This One On A Snowy Sunday — “Last 15 Seconds” Edition.

I did laugh out loud — at an otherwise average to below average SNL segment, given how much great material 45 is providing the franchise, day by fateful day.

And, in truth, we are likely reaching the end of Martin Shkreli’s pop culture relevance — soon he will just be another felony convict — No. 87850-053 — doing a piece of time, anonymously.

So — we will grant him a shout out, on the last 15 seconds — of his (credit: Andy Warhol) 15 minutes… of fame.

Though “notoriousmight be more apt than famous.

See image at right, and see the “SNL Weekend Update” bit below (“$8,000 a jar“), from last night:

“For Every Garbage Can — There Is A… Lid” Department

I am probably going to regret posting this, but WTH…

While we wait for something other than routine post trial matters, on Mr. Greebel’s case… and we wait for Marty’s facility transfer to work its way through the system — I will sh!t-post a bit.

The person curating Marty’s Facebook account put a version or the image at right up, overnight.

Ahem. I am put in mind of the adage — about garbage cans… and lids.

It here applies.

That’s all I’ve got — but maybe Ms. Holmes will turn out to be Marty’s sugar momma — when Marty is broke — in about four months. OTOH, she may soon be insolvent, as well.


Psst! CONFIDENTIAL — To Marty’s “Facebook Friend”…

I will make short work, of this one — as it is truly… trivial.

But here, over a month after we were alerted to the fact that the “very elite“(!) Marty-led shell called Gödel Systems — its website actually — had been dead stick, for failure to pay its hosting bills, for a bit…

We thought the “friend” who supposedly posts on Facebook at Marty’s former account, on his behalf, would have taken down the preposterous “L33T” banner.

But nope. It remains.

So this morning, let us mock it — and… him.

That’s all I’ve got — as we await word of appeals, and word of his impending relocation — inside the federal Bureau of Prisons. Now you know.

Carry-on. Namaste….

Mr. Kocher Wins Another $388,000 — From Marty, Tonight…

Here is the full text of the able Judge Matsumoto’s amended order:

ORDER Amending Judgment imposed March 9, 2018 (ECF No. [566]).

Before the court are the parties’ submissions regarding an application for restitution from Richard Kocher, who invested a total of $200,000 in Mr. Shkreli’s MSMB Healthcare hedge fund. (Defendant’s Letter, ECF No. 558; Government’s Letter, ECF No. 564; Defendant’s Reply, ECF No. 572.) In February 2012, Mr. Kocher made a $100,000 investment in MSMB Healthcare pursuant to a subscription agreement that included a 1-month redemption notice period. (see GX 107-4 (email exchange with Kevin Mulleady referencing 1-month redemption period).) For his second investment of $100,000, in May 2012, Mr. Kocher negotiated a side-agreement, which would permit him to redeem the investment with one week’s notice. (GX 107-11 (Subscription for Additional Investment, executed by Mr. Shkreli).) In September 2012, Mr. Shkreli notified limited partners in his MSMB Capital and MSMB Healthcare hedge funds that the funds would be winding down and that investors could redeem their investments in cash or in shares of Retrophin. (GX 107-12.) Based on representations made by Mr. Mulleady in late 2012, Mr. Kocher believed his investment to be worth $280,000. (Kocher Decl., ECF No. 564-2 at 6.) Mr. Mulleady’s representation to Mr. Kocher was consistent with Mr. Shkreli’s false representations regarding the performance of the MSMB Healthcare fund. (See GX 83-4 (email from Mr. Shkreli to Mr. Kocher reporting that Mr. Kocher’s account value was $231,161.09 as of July 31, 2012).)

In December 2012, Mr. Kocher made a $150,000 deposit on a real estate investment opportunity with a closing date of March 15, 2013. (Kocher Decl. at 7.) As set forth in Mr. Kocher’s declaration, and supported by documentary and testimonial evidence at trial, Mr. Kocher expected that he would be able to redeem his MSMB Healthcare investment before the closing date to provide him with funds to close the transaction. (Kocher Decl. at 8-9.) After requesting redemption from Mr. Mulleady and Mr. Shkreli without success, however, Mr. Kocher was forced to take on an investment partner for the real estate transaction. (Kocher Decl. at 20.) The partner contributed $300,000 to the project. (Id.) When the real estate investment project “came to fruition,” Mr. Kocher had to pay his partner $769,477.13 as a share of the profits. (Kocher Decl. at 21.) Had Mr. Shkreli not defrauded Mr. Kocher, Mr. Kocher would have been able to use his own money as funding for the real estate investment, and would not have had to take on a partner. (Kocher Decl. at 22.) Mr. Shkreli knew of Mr. Kocher’s liquidity requirements, both from the side-letter agreement (GX 107-11) and a March 11, 2013 email in which Mr. Kocher specifically noted his “liquidity needs.” (GX 107-15.) Nevertheless, Mr. Shkreli did not return Mr. Kocher’s money, forcing Mr. Kocher to engage counsel. (Kocher Decl. at 19.) Mr. Kocher incurred $9,280.50 in legal costs in seeking to redeem his MSMB Healthcare investment, as well as $217.26 in costs related to his trial testimony. (Kocher Decl. at 25.) He now seeks $778,947.63 in restitution.

Pursuant to the Mandatory Victims Restitution Act (“MVRA”), “the court shall order…restitution to the victim of the offense[.]” 18 U.S.C. § 3663A(a)(1). Based on the parties’ submissions, Mr. Kocher’s declaration, and the evidence at trial, the court awards Mr. Kocher restitution for his lost profits and legal costs incurred in seeking to redeem his MSMB Healthcare investment. The defense cites United States v. Maynard for the proposition that the MVRA does not permit restitution awards for “business expenses,” 743 F.3d 374, 380 (2d Cir. 2014), but Maynard is distinguishable. In Maynard, the Second Circuit rejected business expenses that the victim would have incurred in the ordinary course of business. See id. In contrast, but for Mr. Shkreli’s fraud, Mr. Kocher would have been able to use his own funds to finance his real estate investment, and would not have had to take on a partner and share the profits from the venture. (Kocher Decl. at 22.) Mr. Shkreli falsely represented that MSMB Healthcare was performing well, and also falsely represented that the fund had the ability to redeem investments in cash by December 1, 2012. (GX 83-4; 107-12.) Mr. Kocher relied on Mr. Shkreli’s false statements regarding the performance of his investment and MSMB Healthcare’s liquidity, and his lost profits therefore “naturally and directly flow” from Mr. Shkreli’s fraudulent conduct. See United States v. Boccagna, 450 F.3d 107, 121 (2d Cir. 2006) (distinguishing permissible MVRA damages from impermissible consequential damages). These losses are therefore compensable in a restitution award. See United States v. Qurashi, 634 F.3d 699, 705 (2d Cir. 2011) (prejudgment interest in MVRA restitution award appropriate because full compensation for actual loss “includes the loss of the ability to put [the victim’s] money to productive use”); United States v. Scott, 321 Fed. Appx 71 (2d Cir. 2009) (summary order) (“the actual value of the stolen property…was the nominal value of the stolen funds plus the subsequent investment gains lost as a result of the theft”). Similarly, Mr. Kocher would not have had to engage counsel to seek redemption of his MSMB Healthcare investment had it not been for Mr. Shkreli’s fraudulent conduct.

For the foregoing reasons, the court awards Mr. Kocher restitution in the amount of $388,336.49, due and payable immediately, which represents Mr. Kocher’s lost profits ($769,477.13) and his legal costs associated with the MSMB Healthcare fraud ($9,280.50), less the value of the Retrophin stock and cash Mr. Kocher received as part of a settlement agreement executed by Mr. Shkreli ($390,421.14). (GX 54; see Governments Letter at 3.)

Ordered by Judge Kiyo A. Matsumoto on 4/9/2018….

Now you know — and more broadly, I am smiling a beaming namaste…. on a big day in Trump’s unraveling. His personal lawyer now risks disbarment (likely) or jail (less likely), if he refuses to flip.