[U X3] Thank God — It’s A Sweltering Summer Friday!

UPDATED: 1:30 PM EDT — jury and witnesses have wrapped up for the day; only one or two witnesses. Jury to return Monday. Lunch break.

Lawyers now arguing motions; and now back from lunch. See FTD’s comments (below) for which twitter feed to follow. 

Later they’ll be sent off to write the briefs over the weekend, as mentioned below. And there is a lemonade… with my name on it! I’m out (when that happens)!

UPDATE @ 9:30 AM EDT:  Ahem. This (below) is proof positive that I am no felony review criminal defense lawyer…. and I’m… okay with that.

The able Judge Matsumoto just denied the government’s motion to admit at least a few of the agreements (without testimony of the consultant involved), but also granted the government the right to admit various records, emails, account statements, and so on — via the transfer agent. [I am still certain the government can get the consulting agreements in — the only question is who will be the witnesses the government uses?]

I’ll have more tonight; still analyzing this — but certainly the government may call the witnesses, and have them admitted that way, as well. [Query how important the largely cumulative effect of all of them really is.] Paging R West, here: “Pick up the white paging telephone…” smile.

In full, then here is her order, just entered:

ORDER granting in part and denying in part [273] Government’s Motion in Limine as to Martin Shkreli.

(1) The court considered the submissions of the parties [273], [274], [275] and heard oral argument. The court denied the government’s motion to admit the subscription agreements of the MSMB Capital investors specified in the government’s motion. (2) The court granted the government’s motion to admit the performance estimates sent to the MSMB Capital and MSMB Healthcare investors by Martin Shkreli and his employees and agents. The government will reserve decision regarding the performance estimates sent to investors by NAV, pending the receipt of additional evidence discussed at the oral argument. (3) By noon on 7/21/17, defendant shall submit a list of the emails to which he objects and the bases for his objections. In response, to the extent that defendant disputes that the individual is a co-conspirator, if the government contends that the email is sent to or by or copied to a co-conspirator, the government shall cite to evidence that supports its view that the individual is a co-conspirator. (4) The government has withdrawn without prejudice its motion to admit the consulting agreements of MSMB Healthcare investors SR and AG. (5) The government requested further briefing on the admissibility of the settlement agreements SS and ML. (6) With respect to the evidence to be admitted by the Standard Registrar, the government withdrew without prejudice its motion to admit the consulting agreement of AG, and will move to admit but will not seek testimony regarding the settlement agreements of SS and ML, pending further briefing and a decision regarding the admissibility of the settlement agreements.

Ordered by Judge Kiyo A. Matsumoto on 7/21/2017….

[End updated portion.]

Let this be the place where we plant ourselves by the open air fountains, and linger with a cool freshly squeezed real lemonade, and some large, very ripe and slightly sweet dark cherries, from the farm to table open air mart in the Loop — all while we collect (via the magic of the inter-tubes!) the goings on from in and around the ceremonial courtroom, in Brooklyn’s federal District Court, today. It is decidedly toasty and yet wet, here — and likely there, as well.

Do see the last three posts, to get caught up (and especially the comments thereto) — but I do expect the able judge will simply rule to allow most of the agreements as signed to be admitted by the transfer agent for Retrophin, if for no other reason than that they are evidence of Retrophin shares being issued to people with no real duties, or connection to… Retrophin, the public company.

But each one was a jilted PRIOR hedge fund investor. All of it is (if nothing else) evidence of a pattern Ponzi scheme, controlled by Mr. Shkreli, as a then-“control person” (under applicable SEC rules) of Retrophin — just as alleged in the indictment.

Onward — and do try to stay… frosty!


14 thoughts on “[U X3] Thank God — It’s A Sweltering Summer Friday!

  1. FTD says:

    A jaded side of me says that the money not lost will make Shkreli walk. The Jury may not be able to understand chain of repercussions. I just don’t know what to think with every passing day.

    BUT I do know that the level of fraud he has done, he will get caught eventually. He seems to be a habitual offender. This is still how I see it from my non professional soap box. 🙂

    Liked by 1 person

    • condor says:

      I was going to make this a weekend post — but in truth it is… trivial. [And we are likely to have new legal briefs to look at come late Saturday/Sunday, on the skirmishes now underway out of the jury’s earshot.]

      The comment then: Yesterday at around 2 PM EDT, while his trial was on hiatus, apparently Mr. Shkreli was posting to his Facebook account, thus:

      “…We filed a motion on ECF explaining that if the cowardly government wants to submit more evidence, they have to CALL their witnesses, not the FBI to explain themselves. This is not North Korea….”

      Well. Mr. Shkreli does indeed enjoy a wide array of constitutional and human rights here in the US, that he would not have been afforded in North Korea. That much is true.

      As he posts his inane, clue-free and vapid status updates, and offers faux-investing advice by live streams, he might take a moment — in between his lattes and Monster energy drinks and McDonald’s carry out meals, while sitting in his posh Murray Hill digs, surfing high-speed internet, under his Picasso and beside his Enigma machine and listening to the sole copy Wu-Tang album [all purchased with gouged drug price money, at base]… to ponder that had he gouged any price, on anything he produced or acquired, through a middleman, in North Korea, on anything — from stale, slimy, rotting cabbage, to off-patent but life-saving pharmaceuticals — he would be beaten savagely with long leather whips, then within a day or two — before the blood from the beating on his back and legs had even dried… lined up against a brick wall somewhere in the interior of a drab gray prison, long ago… and summarily cut in two, by anti-aircraft machine gunners. No trial. Just an execution.

      No it is not North Korea, Mr. Shkreli. And your whining narcissism insults the hard working, savvy, diligent and honest AUSAs. I trust they will pin a printout your FB status update calling them “cowards” to the cork-board. And they will hopefully make some mention of it, in your sentencing reports, to show your distain for the freedom (from crime, primarily) these same AUSAs provide all of us Americans, by watchful eyes….

      Damn. What a tool.

      Have a great weekend, one and all.

      N.B.: Likely the next post will contain these expected additional briefs, and/or memos of law, should they be filed by the parties over the weekend.


  2. FTD says:

    Wrap til Monday 🙂

    Liked by 1 person

  3. FTD says:

    Condor heads up, fresh on the ground reporting for Friday. Next Thursday it could be a wrap? Holy cow…Brafman has no one. 🙂

    Liked by 1 person

    • condor says:

      I hear you — but none of this is needed to get to a guilty verdict… it is more like icing and cherries, on the top… of the cake.

      The government is just looking to cement the notion that the Ponzi scheme wasn’t an aberration — it was the main business model.

      And, with the exception of Mr. Sanders, they may just call the witnesses anyway. It will repetitive and boring — but the AUSAs could do that as well.



      • FTD says:

        If the jury doesn’t catch it now, they will never catch it. I can’t imagine Shkreli’s witnesses will hold up to scrutiny when the defense cross examines them. 🙂

        Liked by 1 person

      • R West says:

        As someone pointed out, they do not have many securities fraud trials in Brooklyn, so the Judge probably doesn’t have much experience in a criminal securities case. Due to the complexity of the issues, she’s probably scared of being reversed on appeal – so she’s being very careful and conservative. She’s also a former federal prosecutor – one can’t erase that from her brain. So she’s also thinking the prosecution is winning; the prosecution can convict without her 100% ruling in their favor, so why take a chance on a reversal?

        Liked by 1 person

      • condor says:

        Good point, regarding not calling fouls on the defense — just as the refs swallow their whistles in the last seconds of a game seven in the NBA Finals… don’t let anyone blame the judge, if the score isn’t close, anyway.

        And in any event, the prosecution may still get the contracts in via the witnesses… it will just be a matter of discretion: balancing how much more cumulative weight is needed vs. potential to hit distraction point (boring the jury).

        It should be an entertaining last few weeks!



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