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…