Friday Morning — At Nine AM EDT, Sharp! — Back Underway, In Brooklyn…

Ahh… what the heck — I’ll just post this, as is tonight. I’m too tired to polish it. Forgive minor typos, etc. I wrote in in comments below, earlier tonight — and it makes a general point, about the lack of effectiveness of Mr. Brafman’s continual whining about the investors not having lost money (though we will later learn that some clearly did). This will also serve as “the open thread” for the second full day (Day Two) of government witnesses’ testimony, in the prosecution’s case in chief…


Billy — I want to address this (Brafman notion) in particular, in a future post — and I will [just a little too fried (tired) to line it all out right now, and create a snappy graphic!]… Judge Matsumoto has ruled, in pre-trial orders, that Mr. Brafman cannot argue the “no ultimate harm” doctrine here.

She so ruled because the charges he’s been indicted on (at least three of them, by my reckoning) are not the sort that, in the Second Circuit, may be defended away/out by saying there was “no loss of money” by investors. Quite the contrary — the prosecution is likely to be able to instruct the jury that even though Ms. Hassan made money, in the end… the jury may not use that as (subsequent) proof of lack of intent to defraud, on the part of Mr. Shkreli. All that is relevant, under the charged counts three, six and (of course!) eight — is whether he told the truth when he solicited Ms. Hassan for the investment. He did not. See page 38 through 40, of the able judge’s opinion, from over the weekend.
Mr. Shkreli is specifically charged with selling (Ms. Hassan, among others) both fund shares, and later, Retrophin shares (in satisfaction of the the failed hedge fund(s)) — to investors while openly lying about past performance. To be able to assert “lack of intent/and no lost money” — the original solicitation of the investor funds must at least have originally been completely truthful. None of these were. At least, Mr. Brafman (I believe) will be unable to present any direct evidence that the sales/solicitations were completely truthful (absent Mr. Shkreli taking the stand — i.e., not happening).

So: Brafman — lots of sound and fury; Shkreli — clad in orange shortly, anyway.

Namaste, man!


22 thoughts on “Friday Morning — At Nine AM EDT, Sharp! — Back Underway, In Brooklyn…

  1. FTD says:

    I still remember the time i discovered this site, it was on Martin’s stream this year and he was scrolling through the entries and his eyes were widened at how much research was there, he looked terrified. He didn’t counter any of it, just stayed silent and then quickly hit the tab to his other pursuits. πŸ™‚

    Liked by 3 people

  2. FTD says:

    “Wow. Legendary pharma executive Fred Hassan just took witness stand at #MartinShkreli trial in Brooklyn

    Dan Mangan‏ @_DanMangan 6m6 minutes ago
    Fred Hassan just took witness stand at #MartinShkreli trial !!!!!”

    Uh oh… πŸ™‚

    Liked by 2 people

  3. FTD says:

    “Josiah Austin just said he paid rent “for a couple of months” for sister of #MartinShkreli after ‘pharma bro” said he was having tough time” via Mangan

    Liked by 1 person

  4. FTD says:

    so far



  5. billythekid9919 says:

    Am I to assume that the judge is making it clear to the jury that it does not matter what the absolute return on investment was, in determining whether there was fraud or not? Also, is there any effort in figuring out who was cheated so Shkreli’s favored clients could ultimately bank a gain? I think it’s safe to say that his “mentor’s” daughter is someone that he did not want to short change. I’m sure there are investors that he treated less well in the end. Again not that any of it matters in determining his wrongdoing. Also his ultimate track record as a hedge fund manager cannot include returns inflated by the fraud he perpetrated on our RTRX shareholders. Which seems to be exactly what he and Brafmen are trying to do.

    Liked by 1 person

    • condor says:

      Fixed — and yes, but the judge’s instructions will come at the very end — right before the jury is sent off to decide the eight charges. We have about five weeks to wade through before then.

      Will be scarce again today, man… namaste!


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