FINRA Expert To Testify Monday…

With some spotty early morning wi-fi, and hot coffee — I’ll give this a try (please forgive me any formatting issues — typed and edited on an iPhone screen); while I await the end of some preliminary racing, by the waters.

We’ve caught wind of a new fraying — of the seams in the defense’s sails — revealed by the government’s six page letter, overnight. The defense is trying to prevent a well-qualified FINRA expert from simplifying, and explaining the SEC rules and disclosure forms we often talk about here.

I predict the able Judge Matsumoto will allow her — as an expert fact witness — to explain how “the rubber meets the road” — on Count Eight. [You’ll recall this is the one I say will get Mr. Shkreli his ten year minimum.]

She will explain the law applicable to the Fearnow shares “parkings” — and will allow the jury to understand why the threats made by Mr. Shkreli prove he was trying to “control” those shares, in secret (the central crime of Count Eight). That will be devastating.

Here’s a bit, overnight from the AUSAs’ letter — on PACER:

Ms. Oremland will give the jury the necessary context to understand why Schedule 13D requires the disclosure of beneficial ownership of more than 5% of a company’s voting common shares namely, that such a level of ownership could allow an individual to affect the share price upwards, downwards or not at all and thus the market should be aware of beneficial ownership issues….

I expect the defense will file an answer tonight or tomorrow — but this testimony will be allowed in. I’m sure of it.

She has some nice summary charts as visual aids for the jury’s understanding as well.

Monday will be a big day, in Brooklyn — as the defense will presumably be relegated (on this Count) to arguing that Mr. Greebel, of his own volition, “tricked” Mr. Shkreli into violating these criminal laws.

Ah, the old “faithless lawyer” defense. [A sensible juror might ask “What would Mr. Greebel have gained, by tricking Mr. Shkreli into manipulating the market for Retrophin stock?” He was never paid any of his in stock (in fact he was mostly slow-paid, or paid a fraction of what he was owed); and IIRC, he never owned any Retrophin shares.]

Good luck with that, Mr. Brafman.

Namaste, one and all…

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74 thoughts on “FINRA Expert To Testify Monday…

  1. Mr Rhymes says:

    I was listening to Shkreli in his Discord channel and he say he’s feeling comfortable that he’s going to win and the government’s case is slipping away.

    Liked by 1 person

    • billythekid9919 says:

      Clearly that’s the only way he can cope with his web of lies being unfolded in front of him and jury every day. The shit I read from the accountant today seems pretty tough to overcome. When you’re trying to get your company ready to go public and the accounting firm you’ve hired QUITS!?!?!? That can’t be a good look to the jury when questionable accounting between RTRX and MSMB IS THE CASE against him.

      Liked by 1 person

    • FTD says:

      I think he just thinks he is in the same ballpark as all Brafman clients. He just went with Brafman on his legendary client list. Marty is that kind of guy. Good luck to dealing with everything in the near future that is coming. I still don’t think any of his books are honest. I think he’s going to get more charges if his acolytes are scared & resign from the Turning board.

      The question is, how much can a Shkreli accomplice take? We are about to see. 🙂

      Liked by 1 person

  2. FTD says:

    Finra expert didn’t testify today, curve ball in effect for Condor. Maybe they are reading the blog & don’t like it that the witness is revealed before the trial testimony. Prosecution doesn’t want any spoilers. 🙂

    Like

  3. billythekid9919 says:

    There’s a difference though. Gates actually dropped out of Harvard. Shkreli never attended Columbia and was a dropout of Baruch College.

    Like

      • FTD says:

        What is accurate? His stories about sick children, it sounds scripted as hell. I don’t believe that a person like that has any interest in sick children. We never saw ONE person come out & tell us a heart warming tale. NOT ONE… Why should we accept one iota from him? Jesus, we sound like broken records. 🙂

        Liked by 1 person

      • billythekid9919 says:

        Just like this time last year he was posting shit about Harambe (the gorilla that was shot at the zoo when a kid fell into his enclosure). He was posting crap about Harambe every 5 minutes on Twitter. Until it got old and he just dropped it. I think he cares as much as kids as he does about Harambe. He cares a lot when it can get him attention. The moment it doesn’t gain attention or he’s already taken it as far as he can, he drops it. What an evil little scamp.

        Liked by 1 person

      • FTD says:

        At what point does the shkreli cult come undone? He has these followers who still think the prosecution is slipping up.

        It is bizarre to even have a discussion with a shkreli supporter. They are attracted to his personality & think he’s a genius of medicine & finance. 🙂

        Like

    • FTD says:

      Excellent point, if there was only a way we could get Shkreli agitated to take the stand. He would think he could outsmart the courtroom. 🙂

      Like

    • FTD says:

      It would be a great flash game. “Lie or Half Truth” 🙂

      I really am convinced that everything Martin has lied about where it concerns value. I can pick up on mannerisms. He zones in on particular comments that question his legitmacy as successful. It is almost like, Who else but a guilty person would do that?

      Like

    • FTD says:

      I think Neil’s testimony is a bust at the end, another investor who made money….again. I keep saying that these type of witnesses who make money might sway that one person on the jury. It is easy to disorient someone with “windfalls of profit” rather than “rule of law”

      Liked by 1 person

      • billythekid9919 says:

        I think the testimony from the Accountant and the other testimony from MSMB investors making out like bandits make the Govt’s case that Shkreli enriched himself and the MSMB investors who were clearly pissed off at him at the expense of RTRX. If there was even 1 shareholder in RTRX that wasn’t Marty or and MSMB investor… That shareholder was short changed. A company he owned part of had no reason to pay off MSMB investors nor did they need ot pay Marty’s personal expenses. How does one explain away the $250,000 annual salary but the $575,000 transfer from RTRX to Marty’s personal account that didn’t go through the payroll? The tangled web Marty weaved is slowly unraveling before his eyes. Eventally no amount of spin to his youtube teen followers is going to save him from the orange jump suit!

        Liked by 1 person

  4. FTD says:

    After Lunch break: 🙂

    Liked by 1 person

  5. FTD says:

    More notes from the Trial 🙂

    Liked by 1 person

  6. FTD says:

    Condor, heads up! the only reporter reporting live from the trial today: Good old Zach. We need to get him a pizzza or something. 🙂

    Liked by 1 person

  7. FTD says:

    Condor,Billy,Bmartin , An interaction in the youtube comment section, Martin has been awakened:

    Thomas Harris​@adam brown accounting is a good MAJOR if u want to make money for the rest of your life

    Martin Shkreli​@Thomas Harris do you have any $

    Thomas Harris​@Martin Shkreli data analytics for an investment bank. I hate my fucking life but I get paid a lot

    Martin Shkreli​okay and u said i dont make any trading gains

    Martin Shkreli​do you want to be like $50,000 with me about my capital gains

    Martin Shkreli​or $5,000 or whatever u can afford

    Martin Shkreli​i have all my tax returns right here

    Jacob Bloomberg​Martin isn’t playing folks

    Lauren Payne​martin made 20 mil on vtl

    Martin Shkreli​u said i havent outperformed the market

    Frido Bruehl​I have a high as tax loss carried forwad. does taht count?

    Martin Shkreli​want to put your $ where your low income job having mouth is

    Thomas Harris​Hey man, it wasn’t an attack on your ego. I’ve followed your podcast & you haven’t been beating the indexes.

    Martin Shkreli​right here

    Martin Shkreli​you said you doubt they have millions of capital gains on them

    Martin Shkreli​why you back pedalling now

    Thomas Harris​Because no fucktard would make a bet like that if they were wrong

    Thomas Harris​I’ll make a $2,750 bet you haven’t beat they S&P since 2010. If you’d like to show me anything past 2016.

    Martin Shkreli​what? past 2016? 7 months

    Martin Shkreli​i dont have tax returns for 2017 yet lol

    Thomas Harris​No, I meant your tax returns from 2010 to 2016.

    Martin Shkreli​i have a few of those years here

    Thomas Harris​I’ll even do it if you can produce 3 years where you beat the market from 2010 to 2016.

    Martin Shkreli​and they have capital gains >10m a year

    Martin Shkreli​never had capital gains losses

    Liked by 1 person

  8. aldt440 says:

    Ahh FINRA… one of the many SEC wrecking balls of market integrity and a poster child for big government self preservation!

    Can someone explain to me why the SEC never audited or sanctioned Shkreli after Jackson Su filed two formal complaints against him, Darren Blanton Filed a complaint against him, and he made his own clownish admissions under oath? Maybe, just maybe, the initial Desert Gateway / Retrophin fiasco slipped through the cracks, but there is absolutely no reason for regulators to have allowed the KaloBios implosion to take place.

    My interpretation of the legislative intent behind regulatory bodies is that of a guidance counselor / referee. A regulator’s job should be to identify problems, regulate, and “coach” problem makers back into compliance via monitoring and sanctioning. In other words, they should take a proactive and positive approach to regulation instead of expensive combat maneuvering and damage control maintenance.

    Turning a blind eye for years is part of the problem and now a young man is probably going to prison when several disasters could have been averted. What if, instead of sneaking around and moving in for a kill, the SEC actually told Shkreli he was breaking the law and was facing eminent charges when he waltzed into their office? Do ya think it would have changed the final outcome of this circus and improved market integrity?

    Let’s compare both scenarios:

    Scenario 1.) If Shkreli was audited after the first SEC complaint, he would have been shut down after losing a few million dollars. Shkreli most likely would have gotten a judgment against him and declared bankruptcy. His senior broker would have lost some money and perhaps tightened regulations so the same thing doesn’t happen again.

    Scenario 2.) SEC collects evidence for 5 years and spends a tremendous amount of man hours building up a case… There are millions of documents involved here and this is an absolutely tremendous endeavor that diverts resources away from regulatory efforts. So not only did initial investors in the MSMB entities lose money, the public lost a huge amount of money when KaloBios imploded because the SEC took three years to get off their ass? So, to sum it up, the SEC wastes millions out of their under funded budget to correct a problem they very well knew about and could have easily fixed in its infancy? To top it off, a public company with at least 200M market cap (don’t quote me on this number) totally implodes??? And now the public has to pay even more millions for Shkreli’s prosecution and looming prison term??

    How does scenario 2 have anything to do with maintaining market integrity? The SEC destroyed a public company and burned a huge pile of public money as a result of their failure to act.

    Liked by 1 person

      • aldt440 says:

        What crime are you referring to? My whole post is about market regulation and the failure of the SEC to intervene before KaloBios crashed.

        Liked by 1 person

      • billythekid9919 says:

        I concede that Marty is talented at losing money. However, when a company is in liquidation, it’s hard to crash it further no? Any market value KBIO has is related to actions Marty took after he stepped in… Granted as usual Marty cut all kinds of corners and was less than honest in raising funds… But if he hadn’t stepped in KBIO would have been liquidated and out of business right now. I am no Marty or KBIO fan BTW. But KBIO is not $0 right now.

        Liked by 1 person

      • billythekid9919 says:

        I thought your original intent commenting on this blog was to defend due process? But now you’re arguing because Mr. Shkreli was under investigation at the time that he got involved with KBIO that the SEC should have taken away his right to get involved with KBIO before he had his day in court to defend himself from the prior charges? Aren’t you arguing against due process in this instance? Are you off your meds?

        Liked by 1 person

      • aldt440 says:

        I’m referring to the short squeeze pump after Nov 19th 2015 and all of the people that got in late. The last ones to the party got screwed after he got arrested. Are you familiar with the securities class action suit against him?? Does 15-cv-05841 in the United States District Court of Northern California ring a bell?

        Liked by 1 person

      • billythekid9919 says:

        Again, I’m not going to defend Marty and how he did business… He’s a lying scumbag who has destroyed more shareholder value than he has created… I agree the lies he told during his short stint at KBIO ended up screwing many people. But justice isn’t delivered in real time. The wheels of justice grind slowly.

        Liked by 1 person

      • billythekid9919 says:

        How exactly is the SEC to blame for any of this? Because they didn’t arrest and convict Marty of crimes in real time? That’s a bit of an unrealistic expectation of how justice works. Are you going to give another School House Rock breakdown? Newsflash… The real world doesn’t work in a sterile lab. It’s messy. People doing business should do their research. I was aware of the pending legal issues for Shkreli before he made his move on KBIO. People who bought into KBIO before his arrest didn’t do their research.

        Liked by 1 person

      • aldt440 says:

        An indictment is a formal accusation that a person has committed a crime. There are several measures incorporated in the indictment process to protect the rights of alleged defendants.

        If a grand jury returns an indictment, the court has formal jurisdiction of the matter and the defendant. Bail is a decision rendered by the court on the liberty or otherwise of the accused, between the time of arrest and verdict. Bail has two purposes: protect society, and ensure that the defendant returns to court. To satisfy these two criteria, the judge can keep the defendant in jail, prevent the defendant from trading securities, take away internet privileges, and all sorts of other things. To sum it up, an arrest severely curtails a defendant’s criminal prospects and puts them in a penalty box. In Shkreli’s case, the judge barred him from using his trading account to make money and restricted his movement. He also has to report to a pre-trial officer every month and explain himself.

        You are correct, criminal defendants have several constitutional rights and yes, the prosecution must prove guilt beyond a reasonable doubt.

        If you think some modern bail conditions infringe on the 6th amendment, you’re correct! Unfortunately, 6th amendment debates are a bit much for this blog.

        Liked by 1 person

      • billythekid9919 says:

        It takes shockingly long for you to look up your school house rock definitions then copy and paste them onto this blog. What do you have to offer to the discussion besdies things you find on google?

        Liked by 1 person

    • billythekid9919 says:

      He is being exposed for his inept hedge fund management daily. I am not surprised that he’s resorting to his normal defense mechanism (Lying) to keep up the illusion for his followers that he was somehow successful even though his THREE attempts at managing money failed quickly and spectacularly. It’s not easy to lose more money than you manage. But Marty did it at least twice!

      Liked by 1 person

  9. FTD says:

    Martin looks like he isn’t getting sleep hours just typing away at numbers in his excel, looking at his facebook updates, checking twitter timeline, getting in a chess game or two 🙂

    Liked by 1 person

  10. billythekid9919 says:

    Will we ever see the RTRX employee who’s family was threatened in relation to the “Parking” as a defense witness? Are they saving him for the end of their case for some reason? Do you think the prosecution is about done presenting their case? Given that we are about 1/2 way through the allotted 6 weeks?

    Liked by 1 person

    • condor says:

      I think he’s the “closer” — yes. Also, the prosecution filed a motion suggesting the trial is running long — so we may have another full week of government witnesses. The prosecution was seeking to get extra time as to Mr. Greebel, since the same team is handling this trial.

      That motion was denied this morning — but Mr. Greebel’s (severed) trial date may slip a bit.

      Namaste!

      Like

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