The “Dings” — Against Mr. Shkreli’s Honesty, Integrity And Character — Are Piling Up…

Hello and good morning, all —

This will be the open thread for trial updates/observations, for Tuesday July 11, 2017.

As many have noted in comments, the prosecution witnesses are painting a pretty consistent picture of who Martin Shkreli is — at base.

And much (most?) of that picture suggests a dishonest man, a man of low character. I am pretty sure Mr. Brafman will not be able to find 30 or so witnesses, of equal standing, to white-wash, and repaint… this portrait.

But we shall see. I do think six weeks of this is going to be devastating to his chances — especially where the whole defense seems to be “at least some people made money“.

Good luck there, team defense. And strictly speaking, character only becomes part of the case when the defense puts his “generally good” character in issue — as it clearly has, here. [I do think this sort of stuff matters to the ordinary people, in the jury box.]

The jury is thus (as a matter of law) allowed to hear evidence that would suggest (at a minimum) Mr. Shkreli ought not be believed, as to his version of these events.

Let’s see what today brings!




40 thoughts on “The “Dings” — Against Mr. Shkreli’s Honesty, Integrity And Character — Are Piling Up…

    • condor says:

      She never “parked” securities — this is an eight count indictment (hers was only seven; some of which were not even felonies — all of Mr. Shkreli’s are), and she agreed to a guilty plea.

      And she wasn’t charged with wire fraud — she didn’t (allegedly) act as the kingpin, in a series of schemes in which she co-opted a lawyer, for cover (my “allegedly” is out of respect for Mr. Greebel).

      Most importantly, hers is a CFTC case — not a case involving the market manipulation of an SEC-registered public company case. That is, she never controlled a public company, and then defrauded the public shareholders of that ’34 Act company. That all matters quite a bit.

      She didn’t force the government to spend enormous resources on a trial; she wasn’t contemptuous of the Judge — didn’t call the AUSAs the “junior varsity”…

      Even if Mr. Shkreli were to plead guilty right now, he’d get a minimum of ten years. He may only do five, with day for day credit, but he’ll get ten.

      That’s my guess. But we shall see….

      I may make this the springboard for today’s open thread… thanks FTD!



  1. condor says:

    And just moments ago — Mr. Shkreli was live on YouTube (per the New York Post):

    He lashed out at another woman, saying: “You might wanna lose some weight before you come at me one more time, you nasty a– h-. I wouldn’t f–k you with my friend’s d–k. Get the hell out of here, b—h….


    Liked by 1 person

    • aldt440 says:

      Ya know, I’ve had a couple theories on his behavior over the last two years. My first theory was that he was role playing. I thought that he was just joking around online and maintained a healthy lifestyle when he logged off. This has obviously been debunked. My second theory was that he was scared of going to jail and was trying to harden himself up for prison / deal with an identity crisis. Billy has an alternate theory that he is just an asshole, plain and simple. Maybe I’m a bit too optimistic?

      There was a guy about a decade ago that presented almost the exact same defense as Martin, but even he wasn’t as brash. His name was Drew Peterson. He absolutely loved going on cameras and completely disregarded the fact that he was the suspect in the murder of his third wife and the disappearance of his fourth wife. He was an overly confident police lieutenant and knew the system inside and out, or so he thought… Unfortunately, it didn’t end well for him and he was such an asshole that the Illinois legislature created a hearsay exception to capital cases dubbed “Drew’s Law” just to nail him! He was subsequently convicted in 2012 for murder based on hearsay!

      There’s tons of videos of him incriminating himself and I encourage everyone to watch.


      • condor says:

        Thanks, altd440 —

        As a resident of the fine City of Chicago, I followed “Serial Drew’s” trial very closely. He brutally murdered at least two wives — and lord only knows how many side-affair partners (generally under-educated much younger women), he was never formally linked to.

        He is a monster — and in truth, I think he is significantly worse than Mr. Shkreli. He killed both of those women with his bare hands, and as you say — he bragged about it. Repeatedly.

        Mr. Shkreli is (still just allegedly at this point) a different sort of sociopath — his pricing of Daraprim likely has resulted in otherwise avoidble deaths (of HIV)… but he never drowned anyone in a bathtub, with his own hands — as far as we know.

        But I take your point re hearsay. The law got the right man in that case, without a doubt.



  2. billythekid9919 says:

    So… so far 12 people who didn’t have an opinion about Shkreli have heard: 1. He promised 30 day liquidity “no lockup”, 2. Shorted analyst on her salary, 3. Skipped out on office rent, 4. Told broker he located OREX shares to short, 5. Told clients he managed $30MM-$50MM, 6. Feigned being homosexual to “impress” (?) homosexual fund investor.

    How will these 12 folks view his integrity? Hmmm?


    • FTD says:

      I’m going to watch the live stream tonight, we should see more of the reality sinking in….. The trolls will be even more vicious. Karma is real. 🙂

      Liked by 1 person

    • condor says:

      And Page Six has this from a Milo Y. (nastiness!) party, ongoing tonight — at which Mr. Shkreli is presently quaffing (no doubt very expensive) champagne:

      “He was mobbed,” an attendee tells us with absolutely no trace of irony. “People really seemed to like him.”

      Shkreli, who has been called the most hated man in America, was filmed tipping back Champagne and chatting up two brunettes at the party, which included other such distasteful entertainment as yarmulke-wearing midgets, “jihadi” strippers and a performance by a troupe called Donna Trumplova & the Siberian Sex Circus, which has been suspended from Instagram since the party….


  3. billythekid9919 says:

    When he managed that little money… how could he hire an analyst for an annual salary of $150,000??? He wouldn’t even have generated that much in fees for either fund!!??? Was he strait up paying employees out of the fund’s assets??!!

    Liked by 1 person

  4. billythekid9919 says:

    It would be pretty funny if it wasn’t so sad, but the cost of the defense in this trial (not to mention tax payer money) is many multiples of what little money Shkreli ever managed. (Then lost more than 100% of) And he’s a “Wall St. Genius”. I’d suggest he stop giving the “investing classes” ASAP. He clearly SUCKS at it! Hilarious!


  5. billythekid9919 says:

    “Asked how much stock was being held by MSMB Capital at the end of February 2011, Spaulding answered, “Zero.”

    Despite that, investors have said, Shkreli sent out statements showing positive returns for their money placed into MSMB Capital.”

    Liked by 1 person

    • condor says:

      Let’s just save time here — we will label this “Lie No. 2”, Billy — in the land of satisfying the request of the commenter known as… “The BLOB”!

      Hilarious, indeed!

      Liked by 1 person

      • condor says:

        Mr. Brafman will try to say her methodology is unsound, and that there is no proof that Mr. Shkreli himself prepared the statements that were sent out — that will be most of it.

        But I agree — other than trying to confuse here — about irrelevant details, and say that (hopefully) the defense will be able to offer a countervailing expert’s opinion(!) that the fund was always at least solvent (he’s already admitted Marty wasn’t accurate) — it’s now the boring accountants’ section of… “Game Over” I’ve been pointing toward.

        Namaste, man!

        Liked by 1 person

    • aldt440 says:

      Wow.. Just WOW. I haven’t read everything associated with this case, nor do I know everything that is going on, but has the veil been pierced? Can he argue he is protected from liability because the MSMB entities are separate and distinct? Does respondeat superior come into play here somehow?

      Liked by 1 person

      • condor says:

        Marty himself has pierced it. His own lawyer is arguing that Marty always intended that all of Retrophin “belonged” to his hedge funds. [Of course, that is no defense to the charges — even if it were true — and… it is not!]

        Obviously that makes the public shareholders of Retrophin… um… kind of inconvenient, for that theory.

        Rock — meet hard place.

        Eventually Mr. Brafman will have to say either (1) Mr. Shkreli shorted the rights of the Retrophin public shareholders, or (2) he shorted the smaller players in his failed hedge funds… but the “Marty just mixed everything together” defense (hah!) is an admission of criminal conversion.

        He’s cooked — stick a fork in him; get him off the grill, already!


      • condor says:

        And earlier today (Hat Tip to Billy!), the NY Post had this:

        The 34-year-old​ ​–​ ​who arrived in court with an unidentified substance smeared near his mouth​ ​– is accused of rolling funds through his hedge fund, MSMB Capital, into his new pharmaceuticals company, Retrophin, without telling investors….

        Let us hope it was just dried up Yoplait yogurt, from his ealrier breakfast, at the corners of his mouth — and not a white powdery substance — above his upper lip.

        One literally could not make this junk up, if one tried….

        Liked by 1 person

  6. billythekid9919 says:

    “Spaulding reviewed financial records of Shkreli’s companies for prosecutors at his securities fraud trial.
    She revealed Tuesday that Retrophin, a drug company founded by Shkreli, paid $10,000 for Jay-Z concert tickets at a time when the company had just tens of thousands of dollars in its own bank accounts.

    And the accountant testified that records showed more than $1.3 million in funds money from Retrophin being transferred to Shkreli’s personal bank account, and another $26,000 being transferred into that account from MSMB Capital.

    Spaulding’s testimony at Shkreli’s trial is potentially damning because a series of investors have already told jurors that Shkreli claimed to have $30 million to $50 million in assets under management at his hedge funds before they placed their own money in those funds.”

    Liked by 1 person

  7. billythekid9919 says:

    “That accountant also said that an analysis of one of Shkreli’s funds, MSMB Capital Management, showed that it never at any one point had a total of more than $1.2 million in its bank account and brokerage account combined.

    And the combined balance of a brokerage account and several bank accounts maintained by his other fund, MSMB Healthcare, never topped $1.6 million, Wendy Spaulding, the accountant, testified in Brooklyn, New York, federal court.”

    Liked by 1 person

    • condor says:

      Just one. But that’s true of all felonies… the power of group dynamics often overtakes the holdout, once all 12 are deliberating: how can 11 people (all unbiased) see something so differently than the one (holdout)? Peer pressure is a powerful thing…

      It might take a day or two, but I do not expect a deadlock. And I certainly don’t foresee an acquittal.


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