Mr. Brafman Will NOT Get His Hands On That $5 Million — “Condor Predicts” Dept.

UPDATED | 09.21.2017 @ 1 AM EDT: On motion of Mr. Brafman, Judge Matsumoto has given Marty’s team until the end of the month to respond to the government’s reply discussed below, thus:

“…ORDER as to Martin Shkreli. The court grants defendant’s [380] request to file a reply to the government’s [379] opposition to defendant’s [375] motion to release his bond obligation, by September 30, 2017 at 5:00 p.m. Ordered by Judge Kiyo A. Matsumoto on 9/20/2017.…”

So we will have to wait a tic here, for final resolution, on this issue. [End, updated portion.]

The ever-capable AUSAs have just now filed their letter brief opposing any release of the E*Trade account proceeds to Mr. Brafman’s firm.

That brief will almost certainly carry the day. Here are all three pages (as a compact PDF file) — and a bit:

On December 17, 2015, the defendant was released on a $5 million bond which was to be secured by a lien on his assets. On January 7, 2016, the government, with the consent of the defendant, applied for the Restraining Order, which provided for a lien on assets in the defendant’s E*TRADE account, which at that time was represented to have a value of approximately $45 million…. 

In this case, the government respectfully requests, pursuant to 28 U.S.C. § 2044, that the Restraining Order over the assets and funds in the defendant’s E*Trade account remain in place pending the defendant’s sentencing, because the Court may impose an assessment, fine, restitution and/or penalty as part of his sentence. As a result of his conviction, the defendant faces mandatory forfeiture, possible restitution liability, mandatory special assessments, as well as the potential to pay a fine.

Accordingly, the E*Trade account should remain under restraint so that the funds remain available to satisfy the defendant’s prospective financial obligations, especially considering that the defendant has previously represented to the Court that he has limited, illiquid assets beyond his holdings in the E*Trade account….

That’s a winner, in my opinion. The funds may well be used as fines and penalties, at sentencing (that is the judge’s call). They may also (as we’ve said) be turned over to the IRS or NY State taxing authorities, or awarded to his hundreds of civil victims.

But they certainly shouldn’t be turned over to Mr. Brafman’s control — until after that date — if there are no fines, or assessments, by the judge (not even remotely likely, given the nature of the convictions).

Now you know. And now we will await the able judge’s ruling, likely in a day or two.



6 thoughts on “Mr. Brafman Will NOT Get His Hands On That $5 Million — “Condor Predicts” Dept.

  1. R West says:

    “As a threshold matter, while the defendant’s recent letter application and
    proposed order cite no federal statute, rule or case law, ….”

    One thing about the Government is, they are really good with the Federal Rules of Procedure!

    Liked by 1 person

      • bmartinmd says:

        Wow. So Fox Rothschild may have possession of the Wu-Tang album, and Brafman might not get his hands on the cash in Shkreli’s E*Trade account. What’s left of Shkreli’s potential assets to pay off Brafman, who is probably owed millions? The Picasso? The Enigma machine? Shkreli’s ownership in Turing/Vyera?

        Sale of the Picasso (depending on what it is) might satisfy Brafman’s bills. Otherwise, Shkreli’s going to have to sell his ownership in Turing/Vyera — which means he/they will have to sell the US rights to Daraprim (pyrimethamine), an act that will deep-six the company.

        Liked by 1 person

      • condor says:

        And that Vyera sale will be at distressed prices, in all likelihood…

        The whole ball of yarn is unraveling now…

        Great input — thanks, doc!


        Liked by 1 person

      • billythekid9919 says:

        I always wondered why, instead of just buying KBIO’s idea which he thought would earn the FDA PRV, he decided to meddle in the stock of KBIO instead. I think now it’s pretty clear that he wanted to use it to take Turing public and use KBIO as kind of a shell corp which was already public. (But he wasn’t able to stay legit until he completed that maneuver.) But just think for a moment what level his scams would have risen to had he been able to complete the transation. Turing had a cash generator in Daraprim (if he had raised the price 500% a year for 10 years instead of 5000% over night)… AND if he would have been able to earn the FDA PRV for the combined and publicly trading KBIO/Turing. AND further assuming his past scams hadn’t caught up to him when it did. His scams would have reached new heights! It’s lucky he was stopped when he was!

        Liked by 1 person

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