Extremely Bad News For Marty — Judge’s Loss Calculation, On Sentencing.

 Read it — and weep, Mr. Shkreli (that’s a carefully reasoned 96 page PDF opinion and order — putting him at over $10 million, which, in turn, puts him at +20 in addition to the 6 or 7 — for the main offenses):

...ORDER denying [363] Motion for Acquittal as to Martin Shkreli.

…For the reasons set forth in the attached Memorandum and Order, the court respectfully denies defendant’s motion for a judgment of acquittal [363]. For the purposes of sentencing, the court will apply a loss amount of $2,998,000 on Count Three, $3,402,450 on Count Six, and $4,000,000 on Count Eight. Ordered by Judge Kiyo A. Matsumoto on 2/26/2018….

“…Indeed, Mr. Shkreli had drafted a “Liquidation Press Release” on December 29, 2012, informing the public that Retrophin had decided to declare bankruptcy. (GX 247.) As a result of the charged conspiracy, investors were unaware that what purported to be a public company with over two million free-trading shares was, in fact, a company on the brink of financial disaster that was closely controlled by Mr. Shkreli and his co-conspirators, after Mr. Shkreli and Mr. Greebel carefully secured and then then allocated free-trading shares in Retrophin in order to ensure control. (GX 220; GX 229.) There is, therefore, a plausible argument that the loss amount charged in Count Eight should be based not on a floor of $3 per share, but rather on a lower figure, because – but for Mr. Shkreli and Mr. Greebel’s concealment of the ongoing fraud – the investing public would reasonably have valued Retrophin at less than $3 per share….

…Had the court based its calculations on a lower price “floor,” included the 400,000 “escrow” shares in its calculations, or sought to apply the $2.00 per share loss amount to the total volume of trading shares, the loss amount for Count Eight would have been significantly higher. Nevertheless, in order to fashion a sentence that is “appropriate and practicable under the circumstances,” U.S.S.G. § 2B1.1 comment n.3(C), the court will adopt Probation’s proposed calculation for the intended loss by Mr. Shkreli in Count Eight….”

Just as I long said — Count Eight will be the… killer.

And, it looks like… a decade.

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25 thoughts on “Extremely Bad News For Marty — Judge’s Loss Calculation, On Sentencing.

  1. R West says:

    Plenty of complex issues for appeal. For one, Count 8 only has a statutory max sentence of five years . So to add its damages on to other counts adds more years than five. Second, to determine the stock market loss normally takes expert testimony … nothing indicates an expert opined on the market loss. Problem for Martin is, appeal could take years to resolve. Plus appeal results are notoriously difficult to predict … Second Circuit could rubber stamp the Judge’s Order or put it through the paper shredder … and either result would seem clear in hindsight!

    Liked by 1 person

    • condor says:

      I agree that it may be appealed; but Marty will sit in a camp fed., during all that time. I suspect we will see consecutive sentencing — on at least two counts — to get to 13. Namaste!

      Like

      • billythekid9919 says:

        Does it not matter if the prisoner has and liquid funds to mount an appeal? Seems like Marty’s account is about maxed… surely once the lawyers and taxing authorities are through. How much will Mary have to give up? Is that the $10.4mm?

        Liked by 1 person

      • CagingMartens says:

        I think the sentencing will be concurrent, all the counts group under §3D1.2. He may also be sitting in a USP for a while instead of “camp fed” because of the Hillary stunt.

        Liked by 1 person

      • condor says:

        And while I respect both of your opinions, I think the post conviction “stunt” hasn’t been factored into your calculations.

        If considered a threat of violence by a three time convicted felon — I think Mr. Schwartz may be a little low.

        If simply considered additional (post conviction) bad acts (proven — and not indicating any degree of remorse) — I think Mr. Schwartz is pretty much… spot on. As is Professor Coffee.

        But we will know in about ten days, now.

        I agree, CagingMartens — he may do an additional (first) six months in a harder federal facility, for the post conviction threats to HRC, and Lauren Duca.

        Namaste

        Liked by 1 person

      • CagingMartens says:

        The big question is whether upward departure for the post conviction stunt can survive appellate review. It’s certainly plausible but not certain. Uncharged/acquitted conduct can be taken into account by the sentencing judge, but it’s a bit questionable if it’s “relevant” or “related” to securities fraud. I would say if he ends up with a sentence over 87 months, there is a reasonable shot at remand.

        Liked by 1 person

    • condor says:

      Okay — sorry to reply so deeply, here — but this IS relevant, and I want to (mostly) bury it… so that not too many ppl make an issue of it. Here is an image of what Mr. Brafman’s 02.27.2018 public filing says is the Probation rec. on levels — it’s a 41. I think we all forgot about “investment advisor” and “obstruction of justice”.

      Namaste — thanks for all the careful work here!

      Like

    • aldt440 says:

      Somewhere, there’s a video of me telling him that 10 year sentences are customary in the Federal Criminal Justice System. After I explained my sentiment to him, he scolded me for a few minutes and bluntly stated that he has the best lawyers money can buy, his team has done the work, and 6 months to a year is the correct estimate according to the Guidelines. He then went into some delusional diatribe and explained to me that he would have purchased stacks of legal books and would dedicate all of his time to fighting the case if a 10 year sentence was plausible.

      I almost wonder if Braufman ever explained what was going on or just took him for a ride and agreed with him.

      It really is a shame. I want to like the guy and think he has good qualities, but he is consistently his own worst enemy. Lashing out at people that try to help him doesn’t help much either. For a second, Elijah Cummings stepped out of character and did his best to warn him too.

      Liked by 1 person

      • condor says:

        Rep. Cummings is a great man. He helps… everyone. Even miscreants like Marty. Can’t help those who won’t accept it.

        In passing, any narrative that PhRMA was behind is downfall is silly blame shifting. A 93 page opinion makes clear only Marty is to blame for his coming “lost decade.”

        नमस्ते

        Liked by 1 person

  2. bmartinmd says:

    According to the sentencing guidelines–or at least the chart I found online–that means 63-87 months (or about 5-7 years). I suspect that the judge, however, can alter that sentencing on the basis of her judgment re other counts (e.g., Count 7), of which Shkreli was acquitted and his general lack of remorse.

    Liked by 1 person

    • condor says:

      I think what Ms.Terrill and others (but not Dan Mangan, also at CNBC) are missing… is the repeated, well-documented threats of violence.

      First Mr. P.’s wife and family; then his own lawyer… culminating in threats to a MSM journalist and to the former First Lady, and Sec. of State.

      Judge Matsumoto must consider his past, and potential future propensity (through followers or personally)… for violence.

      The guidelines treat post-conviction felons — with violent tendencies — quite harshly. Word.

      I expect a sentence of around 12-13 years; with him serving just under 10. No news there.

      Namaste — and welcome back!

      Liked by 1 person

      • Lauren Duca's Husband's Boyfriend says:

        @CONDOR

        ROFL. A Lauren Duca & Shillary apologist. Hilarious. Threats of violence. Give me a break. Bloviating fucking SJWs.

        Like

      • condor says:

        Hey spud.

        You are on a Cox Communication ISP; out of Fairfax, VA — running Chrome for Android on a Tablet, huh(?)… for a poorly-disguised impersonator, you sure do hang around here… often. And later at night.

        Be careful about impersonating real people, with sh!t-posts — you know, that is (as the current mythology goes) in part what… did old Marty in.

        Actually though, it’s you pushing that nonsense narrative, too, right?

        You should watch… your step.

        You ‘bout to be in ankle deep sh!t — and you don’t have… the boots for it…

        Word.

        Like

    • bmartinmd says:

      Sorry, I think I meant to write Count 7 (one of the charges of which Shkreli was acquitted). Whether fair or not, I believe that the judge can also sentence Shkreli on the basis of acquitted charges as well, at her discretion. We’ve had that conversation before here, right?

      Liked by 1 person

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