[U] He Was NEVER Going To Beat Count 8 — AND THAT WILL COST HIM… 10 YEARS!

UPDATED: Here is my completed Quiz, as a full color hand written PDF, from this morning — per Billy — and you may use it as an answer key. You’re welcome! Hah! [End, update.]

I won’t unduly belabor it — there is plenty here to give him more than ten — but Judge Matsumoto will say truthfully he has no prior violent offenses.

He was astonishingly flagrant — in his violation of the law, under Count 8 — so I predict he gets ten for that one alone.

They say you can tell when justice has been done: “justice… they say, is when everyone feels just a little uncomfortable.” I think that is apt at the moment, all the way around.

By the way — Mr. Shkreli just had his ass handed to him, by the GIRLS’ [Grrrrl POWER!] Junior Varsity. Hilarious — in. his. own. words.

More soon. [Billy has lots of graphics, for future posts — as we hear about a sentencing date.]

Namaste…

148 thoughts on “[U] He Was NEVER Going To Beat Count 8 — AND THAT WILL COST HIM… 10 YEARS!”

  3. billythekid9919 says:
    Reply

    Martin on live stream: “I’m going to be hiring analysts to help manage my wealth, finding stocks etc.”… “I don’t have a hedge fund but I have enough wealth, it’s more or less like a hedge fund”

    Now even he won’t hire himself to invest his money? 🙂

    Liked by 1 person

  9. bmartinmd says:
    Reply

    Sorry to rehash this, condor, but what gets Shkreli up to 10 years for count 8 (or the other counts, for that matter)? I recognize that the judge has a lot of discretion in her sentencing; but if the federal sentencing guidelines are any indication (as offered by “journalist” Christie Smythe), Shkreli is at a level 11 offense (first-timer: level 7 for securities fraud + 4 for being an CEO/officer), which gets him 8-14 months. (I imagine this is where Shkreli is getting his 6-12-month sentence projection.) What gets him up to 120 months? The harm/losses to Retrophin on the basis of the manipulated/parked shares? The flagrancy of his actions? Unfortunately I can’t seem to find the text for count 8 or a copy of the superseding indictment for guidance. Thanks for your breakdown.

    Liked by 1 person

    • aldt440 says:
      Reply

      Condor also thought he would get day for day until last week. Hehe. NYT article says 5 years for count 8:

      “But on Friday, after five days of deliberations, jurors convicted him on three counts of fraud in federal court, and he now faces up to 20 years in prison on each of the first two counts, and up to five years on the final count.”

      Liked by 1 person

      • condor says:
        Reply

        Good luck altd440 — would you like to bet real money? What’s your projection, man? We will pay based on which of us is closer to actual sentence.

        Pony up buttercup!

        Liked by 1 person

      • aldt440 says:
        Reply

        There are too many variables… From my perspective, it all depends on how Matsumoto computes economic loss.

        I think this paper is probably the best place to start.. I’m done with Shkreli today and not motivated to read it right now though.

        Click to access 2016_Primer_Loss.pdf

        How about betting on sentence enhancements instead? It’s way more fun and everybody has a good story to share. I’m guessing two points.

        Liked by 1 person

        • condor says:
          Reply

          The losses — are large. But tell your story here — or in the new post, now up. Namaste all — thanks for a great day… and… goodnight!

          Like

      • bmartinmd says:
        Reply

        “…Judge Matsumoto said she would wait for submissions from both sides on how much money was lost. She set a fall date for those submissions. Mr. Brafman said the defense might ask for no prison time.”

        This appears to be where the rubber hits the road as far as sentencing beyond the minimum 8-14 months, per the guidelines. What were the losses to the hedge funds and/or what did Shkreli illegally take from the hedge funds? Was it confined to Shkreli’s overblown “management fee” (ie, >$200K) or something more? How does the fact that his investors ultimately didn’t lose money–but only because he raided Retrophin’s shares to keep them from filing SEC complaints–figure into the sentencing? And what were the losses to Retrophin? The value of the parked Retrophin shares? If Retrophin’s civil complaint is any guide, the company’s loss in the millions of dollars. If so, I could see how Shkreli’s sentencing could easily get up to 10 years and beyond.

        See also https://www.justice.gov/usao-edny/pr/former-hedge-fund-manager-convicted-multi-million-dollar-fraud-scheme:

        Liked by 1 person

    • condor says:
      Reply

      No worries at all. We have a Columbia 2L (Ms. Smythe) telling us what her “class” taught her.

      Hilarious!

      She is wrong that (1) she thinks his Tweets won’t factor in — they will, in the pre sentencing report.

      Moreover, in the pre sentencing report, (2) un-indicted conduct may be considered generally as well as (3) “acquitted charges”.

      I will have a longer post over the weekend, and even though I don’t do precisely this kind of work — her statements (4) about lack of losses… are simply fanciful.

      Judge Matsumoto (5) well knows how much was stolen from Retrophin public shareholders by his sham consulting and settlement agreements.

      Finally — the sentences MAY all run as overlapping; or at least two of them may (6) run one AFTER the other (that’s called not concurrent but consecutive sentencing).

      In sum, anyone who tells you they are certain… it is a year or two… is lying.

      But I will keep my own counsel — and explain in a later full post — why I think that it ends up at nearly ten years, especially where (as here) he is publishing his rape fantasies in a live stream — right before and after the verdict.

      Did Brafman call in to the live stream to shut him up? Or was that satire?! I don’t really care.

      Namaste

      One of the questions a judge is allowed to consider is (7) his appreciation of the gravity of his conduct. Give him a fat zero there.

      Liked by 1 person

    • aldt440 says:
      Reply

      Yes, that is the same conclusion I came to Dr. Martin. The $11 million cash flow in the parked shares scheme is where his problems are. From his post conviction briefing, Braufman alluded that he would argue the $11 million should not be considered because he was exonerated on count 7.

      Some of your questions are answered in the paper I linked to above.

      Liked by 2 people

      • bmartinmd says:
        Reply

        Thanks, ALDT440, but I won’t be plowing through that lengthy paper. I’ll let the judge explain her sentencing when the time comes. The arguments from both sides should be interesting though and, potentially, amusing.

        Like

    • condor says:
      Reply

      It’s been a blast one and all! Thank you for being fair, fun and challenging where appropriate…

      I’ve asked altd440 if he’s up for a real money bet.

      One with escalating payouts for hoe far off the losing bettor is.

      Let’s see if he bites.

      It will tell us whether Billy’s charge of “troll” is warranted — or whether he’s… a man.

      Watch tomorrow’s post for the bet announcement.

      Namaste!

      Liked by 1 person

  13. billythekid9919 says:
    Reply

    Condor: How much of the “brave face” Shkreli and Brafman had after the verdict was Brafman masterfully managing Marty’s expectations? When you client is found guilty of 3 felonies but you get him to call you “his hero” outside the courthouse?? That’s probably what Ben spent the last week working on… “managing expectations”. Keep Marty from losing it even if he’s partially convicted. Brafman isn’t the one that has to go to prison… Just my thought.

    Liked by 1 person

  15. billythekid9919 says:
    Reply

    The Bad News:
    #1 had two correct answers. His mother is from Croatia. I think his father went there from Albania before they met and moved to the U.S. (still technically correct on your part) You also did score on the bonus.

    #7 was not OREX (that was the disasterous trade that brought down his hedge fund and caused him to owe JPM more than the fund was ever worth.

    The correct answer was: Amag Pharmaceuticals’ long-term investor, MSMB Capital Management, has made an unsolicited offer to buy the firm outright for an aggregate of $378 million, to stop Amag proceeding with a recently announced merger with Allos Therapeutics. MSBM believes Amag’s proposed $686 million merger with Allos, which would give the latter a 39% ownership in the combined entity, isn’t in the best interests of Amag or its shareholders. “The management’s current strategy does not protect the interests of Amag’s stockholders or ensure Amag’s long-term viability,” states Martin Shkreli, MSMB CEO

    #19 — MY BAD Duplicate of 18.

    #26 — MY BAD on this one… I thought it was still Ron Tilles? No?

    #31 Mr. Aselage has been RTRX’s CEO since bouncing Marty, he was also a witness in the case. (BTW did you catch him jawing about his suit against them about wrongful termination this afternoon, “they’ll be writing me a big check very soon” says he)

    #33 – Timothy Perotti (you had A. Pirotti) Close… But

    #34 – You had Wu Tang which is the correct rap group. But the rapper was not ODB but GhostFace Killah (and family)

    #36 – I messed up the wording, but the answer was easy.

    Liked by 1 person

    • condor says:
      Reply

      Which did I miss? OREX is wrong for sure… was running into a meeting! Lemme know, man!

      [And again… a river runs through it, 3:20 and 6:05 pm… smiling.]

      Like

      • billythekid9919 says:
        Reply

        OK so the good news: We are all in your debt. We all make mistakes, clearly you can see all of mine in typing and verbage for the questions. I was banging it out at 2am while my tee time was a 50 minute drive away at 7:07am… That’s the good news. In short you are the man and I would never question THE Man. But…

        Liked by 1 person

  17. FTD says:
    Reply

    Marty is going to overdose on gloating, holy crap:

    can’t comment on this message and what this person means. Maybe referencing the Miss Kentucky? I have no idea. O doubt it is duca. Again, just let him talk…

    Liked by 1 person

  19. FTD says:
    Reply

    This might be one of the MANY reasons Brafman called in on the livestream tonight. 🙂

    “But he also used the stream to repeatedly joke about Miss Kentucky calling in to offer him sexual favors. So perhaps there’s room for further reformation”

    ……………………….

    Liked by 1 person

  21. FTD says:
    Reply

    All the footage the media is going to get this weekend, he can’t stop streaming. Bets on how Long youtube allows him to have a stream? Less than a Day? Less than a week? Less than a month?

    Place your bets 🙂

    Liked by 1 person

  25. bmartinmd says:
    Reply

    Jurors methodical and focused on Shkreli’s intent according to NY Times: https://www.nytimes.com/2017/08/04/business/dealbook/martin-shkreli-guilty.html.

    “[Shkreli] showed outward relief when Judge Matsumoto said he was found not guilty on count seven, mouthing ‘Yes’ and patting his lawyer Benjamin Brafman on the back. When she said he was guilty of count eight, the Retrophin securities-fraud conspiracy, he hung his head. After the verdict was read, he gathered in a circle with his lawyers, looking a little shaken, then pulled on a hoodie. By the time he got outside court, where he gave his statements, he was smiling and speaking smoothly.”

    Liked by 1 person

    • condor says:
      Reply

      Count Seven would have automatically been forfeiture of assets… now that’s a Judge question, on the other three convictions. With Marty… it’s always been about hiding his assets (his money)…

      Sheesh.

      Liked by 1 person

        • condor says:
          Reply

          That is not clear. It is up to Judge Matsumoto. And he’s been as contemptuous of her authority as any defendant as she’s ever seen.

          It is white collar crime… but he is as brazen a liar as she’s likely ever seen.

          There is wide discretion here… hard to predict.

          People who are certain on the issue — of when he’s ordered to report… are likely to be wrong.

          Much yet to learn, from the pre-sentencing report.

          And if they delve into his internet behaviors… well, there are few analogous precedents… at all.

          Namaste…

          Like

  27. John Galt says:
    Reply

    I enjoy your coverage, but wait . . . doesn’t Count 8 have a maximum sentence of 5 years (18 USC 371)? And given his lack of criminal history, wouldn’t he end up with just 6 base points under the guidelines (i.e. 0-6 months)?

    Liked by 1 person

    • R West says:
      Reply

      I can’t believe how fricking complicated these statutes are. Looking at some other cases, conspiracy to commit securities fraud should be a Class C felony, punishable by not more than 12 years. 18 USC §3581(b)(3).

      Liked by 1 person

      • R West says:
        Reply

        There seems to be some dispute over the penalty for Count 8 .. I don’t know. No wonder the newspapers don’t go into any details … but we have some time before he’s sentenced to figure it out!

        Liked by 2 people

      • John Galt says:
        Reply

        I’m open to the possibility that I’m misreading, but the grand jury appears to have used Section 371 — the “generic” federal conspiracy statute — to indict him on Count 8. That statute has a maximum sentence of 5 years.

        But given that the jury didn’t find any financial losses, I think he’s only at a level 6 under the federal sentencing guidelines, which corresponds to 0-6 months. The judge has some discretion to depart from these guidelines, but in my experience, most judges don’t.

        So that’s my reading anyway. My prediction: 6 months on each, served concurrently. But we shall see.

        Liked by 1 person

    • R West says:
      Reply

      John Galt may be right… it might be 5 years. But Gov’t. tacked that on the superseding indictment, because a sentence for conspiracy is more likely to run concurrent. Whatever .. there’s a maze of federal sentencing statutes. We will figure out more before the sentencing … a whole new contest to guess on!

      Liked by 1 person

        • condor says:
          Reply

          To be clear… the guidelines (as R West says) allow consecutive sentences. I am not a criminal lawyer by trade. As I read it, along with the two securities fraud and conspiracy charges… the sentence could be 14 years; but is likely to be less than that.

          I still see ten as the right number, given his absolute contempt (no remorse) for the justice system (he called the able lawyers the JV again post verdict today)… and said the lawyers just want to “get famous”. That the government “slipped one past” the jury, on the guilty counts.

          Judge Matsumoto saw the f-that email and the written threats.

          I like his chances to get ten; and he may not be free on appeal. The evidence of guilt is… simply overwhelming.

          But I’m happy to be proved wrong — it will be the able judge’s call, from here.

          No jury vagaries… namaste!

          Liked by 1 person

  34. bmartinmd says:
    Reply

    Shkreli’s now live on YouTube: “We won 5 out of 8.” Also, “It’s a big victory for us.” He’s “delighted” to “win” the other counts.

    He’s also predicting a light sentence–6 months or 1 year–on the basis of his claim that his investors didn’t lose money. He’s not talking about appeal–at least not yet.

    Otherwise, he’s just litigating his defense–which he and his lawyer failed to present to the jury. In fact, they presented no defense, iirc.

    Liked by 1 person

  35. FTD says:
    Reply

    Just a reminder, if you are feeling like he should have been guilty of more counts. Someone like this likely comes back with more criminal offenses. If the sentence is lenient, he will never learn his lesson.

    There is no one to protect Martin, he doesn’t have a filter when it comes to impulses. He’s screwed. Everyone he has around him praises him, that’s dangerous. Especially if you aren’t from the royal family in Dubai. Justice comes in waves. This was wave one. 🙂

    Liked by 1 person

  36. bmartinmd says:
    Reply

    No T-shirt for me. So the jury found him guilty on 3/5 securities fraud charges and not guilty on the wire-fraud conspiracy charges.
    Count 3 – MSMB Capital Scheme
    Count 6 – MSMB Healthcare Scheme
    Count 8 – Retrophin Unrestricted Securities Scheme

    So how does this verdict bode for “others”? If Shkreli is acquitted of “conspiracy,” at least with ref to counts 3 and 6, does that let “others” (eg, co-conspirator 1) off the hook or at least allow them to breathe a little easier?

    Liked by 1 person

    • FTD says:
      Reply

      He will be guilty of something else in the near future. He thinks he can be a rogue in society and he talks too much. He doesn’t come from a wealthy family like Trump. There is no lineage to protect him once his wealth is depleted & gambled away.

      Like

  37. FTD says:
    Reply

    Kudos to the Jury. I hope to see a jury as competent as this at the Turing trial. Turing, if you are reading this, that man has left a toxicity that must be expunged. It may be painful, but the sooner the better. 🙂

    Liked by 1 person

  38. FTD says:
    Reply

    I have a question for the class and Professor Condor and Assistant Professor BMartin.

    At what point does Martin cross the line & become clear offender of “Internet stalking”? It seems like he is right on the line & doesn’t know how easy it will be to convict him if he keeps talking and harassing women.

    I would say there is enough evidence to keep him off the internet for a long time. You can’t be a businessman and do this. Emily is just the tip of the iceberg of who he has harassed. This is one of the many reasons why this man should not be celebrated.

    Encouraging internet stalking is dangerous, it isn’t trolling, it isn’t funny & it is stressful for the individual.

    I’m going to leave that question mark floating in the air. Because he won’t change his ways and more people will annoy him than ever if he continues to stay on social media until he is sentenced.

    Liked by 1 person

    • condor says:
      Reply

      We will have to come back to this… in a word… it’s complicated. He has first amendment rights, even as a felon. But it sure feels nice to type: “Martin Shkreli — Convicted Felon!” Will he change FB to reflect this?! Hah!

      Liked by 2 people

    • bmartinmd says:
      Reply

      Unfortunately Shkreli’s virtual troll-stalking of women journalists, like Lauren Duca, has goaded others to join in and act even more maliciously. It’s much like how Milo goaded his illiberal internet trolls to harass Leslie Jones. It’s very ugly. But at what point it becomes criminal…I don’t know. That said, Twitter is absolutely terrible at enforcing its policies. Everyone knows @samthemantp is CONVICTED FELON Martin Shkreli, yet the account has been up for days.

      Liked by 1 person

  44. FTD says:
    Reply

    Will Martin still go broke? He needs to go broke. Retrophin clean out this guy. Turing, don’t let this guy create another retrophin, you file a suit too. 🙂

    Liked by 1 person

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