Trial Log For Wednesday: How “Insulting, Contemptuous” Behavior Differs From “Remorse” Edition…

The good soul FTD stayed up late (my condolences!) to hear Mr. Shkreli claim in a YouTube live feed that he will (if convicted) only do three years or less. [I would encourage the able AUSAs to pin this to their cork boards, for a possible September sentencing date — this is… motivation. And my graphic is sincerely intended to suggest that she is… a “saint“, by comparison — to Mr. Shkreli, at least.]

Mr. Shkreli based that on CFTC v. Park — a recent CFTC regulatory case (i.e., not a DoJ/US Attorneys SEC one), stemming from “commodity pool operator” charges — not wire fraud, and “parking” charges, related to public company securities.

Ms. Park never “parked” public company securities — his on the other hand, 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. She wept openly at sentencing, taking full responsibility for her crimes, and expressing genuine remorse — to her victims (mostly friends and family). Importantly, she is not the subject of a raft of securities class actions, spanning at least two public companies, as a control person — leaving one very ugly public company bankruptcy, in her wake. Oh — and she didn’t menace and threaten the wife and children of one of her employees — with whom she had sought to fraudulently “park” those same securities (essentially hiding her level of control of the involved public company — with the goal of manipulating the entire market for that public company’s shares). That’s all… Mr. Shkreli.

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

Most importantly, hers is a CFTC case — not a case involving the market manipulation of an SEC-registered public company. 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. Hers was in no respect an open market fraud on our system of capital raising — and secondary market trading. She was trading commodities which are by definition not… securities.

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”… there is much more, but it all gets rather… redundant after a bit, no? So I’ll stop with factual analysis, here.

In sum, 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…

Post your July 12, 2017 trial thoughts and updates here.

Onward!

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31 thoughts on “Trial Log For Wednesday: How “Insulting, Contemptuous” Behavior Differs From “Remorse” Edition…

  1. FTD says:

    from the inner circle & sounding board of shkreli & an ex shkreli supporter:

    Liked by 1 person

    • billythekid9919 says:

      “But by June 2014, “there were two or three things” that the small board of the company was “concerned” about, Richardson said.

      One was Shkreli’s strained working relationship with a top Retrophin executive, Richardson said. Another was the fact that “he wasn’t following through on some of his commitments” regarding stock trading with investors’ cash in Retrophin being done by company employees.

      Richardson said he and other members of Retrophin’s board became concerned about that trading, which he described as a “hedge fund” within Retrophin. They told Shkreli to scale back such activity, Richardson said.”

      This by itself isn’t illegal is it? The trading. Companies buy and sell securities as investments all the time… I can see the bigger issue being lying to other board members about it.

      Liked by 1 person

    • billythekid9919 says:

      Richardson said he had recently learned that Shkreli, himself a board member, had set up a system to pay Retrophin employees commissions to encourage them to trade stocks, against the board’s instructions. When Richardson asked Shkreli about that at the meeting, Shkreli denied it.

      “I was stunned,” Richardson said. “As a board member – I’m chairman at the time – he’s lying to my face.”

      Liked by 1 person

    • FTD says:

      What other crimes are just right at the surface? How long before Mulleady,Bistek & Mithani turn on Martin? They all deleted their social media. They all tied an anchor to this trainwreck of a person & will sink with him regardless. I bet you the feds will nab one of them to talk & bring forth evidence.

      Karma may never be scientifically proven, but it looks to me that this may be a scientific breakthrough case study that Karma is legitimate science. 🙂

      Like

    • condor says:

      It seems they were not. But even if they were that’s “parking”.

      If they were from treasury shares (or original issue)… that’s parking and criminal conversion.

      Like

      • condor says:

        As always — Marty just did it; like the “consulting” agreements themselves… and (allegedly) with Mr. Greebel creating a plausible paper trial — he delayed by years (current Richardson testimony, on stand now) in sending out board minutes — likely so he could say that ANYTHING Marty wanted was “approved” by Retrophin’s Board (allegedly, as to Mr. Greebel, at least).

        Like

    • aldt440 says:

      I’m considering making a Wiki style flow chart that we can all edit and modify for this very purpose as the details are made public. There’s a website called draw.io and it appears that we can save it to a Google Drive or something similar. Does anyone else have ideas?

      Liked by 1 person

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