The nearly-final figures are emerging from the US District Court filings in San Jose, California, this afternoon. Here is a bit of the 32 page (PDF file) motion for settlement, just filed:
“…As a result of these extensive efforts, Plaintiffs Lead Counsel secured a Settlement with Defendant Shkreli of one million five hundred thousand dollars ($1,500,000.00) in cash….”
This is not (so much) a reflection of how much was actually lost, in the KaloBios fraud by the stockholders. On the contrary, it is more likely just about all Marty will have left. That is, after discovery (in a very private JAMS mediation proceeding) — it tells you that he likely has almost nothing left — after paying his lawyers, his criminal forfeitures, fines and restitution — and the taxing authorities. [As well as the monies he owes Mr. Painter (pretty soon), as we’ve mentioned.]
And… if you want a rundown of everything that happened at KaloBios — here’s a link — to the full 93 page settlement agreement (now amended, to include ALL defendants) — the newest part being Mr. Shkreli’s portion — reached (as I say) after an all day JAMS mediation, last month. Marty appeared by telephone, from the Brooklyn MDC, for that one, on February 13, 2018.
Onward. Oh, and… Mr. Greebel’s request for a new trial has also been answered by the able AUSAs overnight. It too runs over 90 pages.
More bed-time reading…. Hah! Now… GO RAMBLERS!
https://mobile.nytimes.com/2018/03/22/business/shkreli-holmes-fraud.html
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The writing is on the wall here Condor… Theranos, Theranos, Theranos! 🙂
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Hmmm — Theranos/Holmes… or… Tesla/Musk?
Polls are… open!
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Both! No limits baby!
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Impossible! That’s two 60 hour a week jobs!
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Lol. We could up your pay… From slight gratitude to, maximum adoration.
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Good root beer … will be adequate.
Now… Fresh icy OJ, ripe bananas a good active cherry yogurt and hot coffee… extra cream and sugar… and that’s … more than enough!
Hah!
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I don’t think there’s going to be much more Theranos related stuff…
Tesla / Musk is all in the public domain whereas Theranos is closely held. Most importantly, we can pool our brains together to make money if Tesla goes down! Are there any other companies?
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We can make money if it goes up, too. Got that tee shirt! We just have to decide: bull — or bear? And at what entry point…
Namaste!
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And since it has come up here, a few times… here is Matt Herper, on whether Holmes or Marty is “worse-er”!
https://platform.twitter.com/widgets.js
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I agree with Matt. Plus the Theranos device never really went “live”. So the damage to the public was minimal.
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Sending root beer ༼ つ ◕_◕ ༽つ 🍺
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Quick … Condor on a plane. Someone might get a word in without being corrected!
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MARTIN SHKRELI HAS A GOOD CHANCE ON APPEAL … JUDGE WAS OBVIOUSLY BIASED AGAINST DEFENDANT WHO DISRESPECTED WOMEN!
HEY … IT WORKS FOR TRUMP!
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Hilarious! SAD!! BIGLY SAD!
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I am not one for sports but congrats Condor!!!
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So happy for these kids! Woot! Woot!
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Did they win? Congrats!
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People probably wonder why we waste so much time on this Shkreli/Greebel stuff … but still doesn’t match all the time wasted on March Madness! Watching a whole game with commercials is a big waste of time, when all one needs to see are the last two minutes … or the Youtube highlight reel!
Key to winning are those three-pointers … because if you miss, the ball bounces so far out, you have a good chance to get it back. They could all take a lot more threes … just like when UMBC beat UVA …. except eventually the defense will come out (unless you’re UVA)!
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Hopping on a plane home!
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If you look at the form def14a on the sec website you can see that shkreli owned 13% of retrophin in 2014 and about 10% of it in 2015 and i think that 10% ownership was liquidated by 2016. He most likely has funds (on the order of 50 million dollars) hidden away offshore but because of the statements made by the Court regarding opening new bank accounts, he won’t be able to access that money. Rich people don’t just end up destitute as many of you seem to be hoping. At the end of the day, Shkreli did innovate a lot of new drugs and did provide value to society despite the fact that he’s crude and immature.
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One wrinkle — if he’s lied about his assets to DoP, and thus Judge Matsumoto — he will do another four or five years.
He’s now a three time loser.
He has no way to get that money back here… and I’ll bet you a root beer he’s… broke.
[A lot of his declining percentage was dilution… other issuances… IIRC.]
More importantly — Loyola up 12 in second half!
Namaste, from ATL!
PS: not one of those drugs were developed by him. Name one. And I’ll lay it out for ‘ya! Smile!
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PKAN?
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He neglected the development effort — ran no clinical trials — and left it for others to do the real work of getting it approved at Retrophin, post his ouster. He was and is a poseur, on that one!
But believe whatever you like… the truth doesn’t require that you believe it — in order for it to remain… the truth.
Namaste — wi fi on plane!
Still grinning ear to ear!
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“Shkreli did innovate a lot of new drugs and did provide value to society”. This statement is just pure fantasy, projected from the mind of a convicted felon… and imprinted on the gullible. But it’s a free country. You’re free to be hoodwinked by a conman if you wish. That’s just not my bag baby.
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How is it pure fantasy? How do you get to own 13% of a billion dollar company without providing value to society?
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F R A U D.
He has been found by a jury of his peers of being guilty — three felonies, for lying, in taking control of Retrophin (then called Desert Gateway, a dying shell company — but a public one).
His name is on patents that he had literally nothing to do with the “invention”… he was just in the seat as a lying CEO, at the time.
Namaste!
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Damn Condor you beat me to it! I was going to say: “In a word: Fraud”!
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Twin brothers — of different… mothers’
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Born in different states in different decades. 🙂
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Age before beauty baby!
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Greebel already in trouble … AUSA’s didn’t see the need to resort to “preposterous,” etc. They just say he’s wrong.
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“I think I need a new scandal to follow as this and Theranos wind down.”
…I have to remind myself at times news isn’t entertainment. Real people involved etc etc.
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It’s a pretty base desire, I will give you that. 😈
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AUSA’s are also good at the “you don’t know what you’re talking about” thing … they just call it “preposterous” … got to remember that!
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The financial tab for Marty continues to grow… His reported $27million wealth is continually shrinking. Most of that $27million is his interest in Vyera… who’s value is highly uncertain. It should be fun watching how the various assets get picked apart going forward.
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Good luck tonight Mr. Condor, Esq! 🤠
I think I need a new scandal to follow as this and Theranos wind down.
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I think Elon Musk / Tesla / Solar City / SpaceX is going to be the next mega scandal.
Without going into detail, this trifecta borrows VC money from Musk at VC rates. It also borrows VC money from the public at AAA rates. Collectively, the group of companies don’t make any money. Here’s some clues to anyone that wants to connect the dots.
This is Shkreli style insanity:
https://www.cbsnews.com/news/elon-musk-pay-package-of-2-6-billion-meets-with-tesla-shareholder-approval/
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I’m kind of a Musk fan… we will see…
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Musk is an interesting figure. Seems like more of a visionary than a public company CEO. I’d like see him meet some deadlines that he himself sets for Tesla. I’m pretty certain though in the electric vehicle industry he’s dealing with a very small competitive advantage… the other companies are catching up and they have a better track record of delivering on promises. It will be fascinating to watch though.
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“It also borrows VC money from the public at AAA rates.” Please explain what you mean by this. Thanks.
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I think you are right! Also, two of the top finance people have left with unvested stock in the last month.
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Tesla needed $500MM to get started in 2008. The US Government lent $465MM to Tesla at 3% interest under its push for Green Energy. Elon Musk lent the company $38MM at 10% interest plus stock options. Here are the profits on those loans:
Elon Musk’s $38MM? generated a profit of < $1.4BB?, or 3,600% ROR – a VC payout
The Forbes article says he ponied up $6.35M in series A that was worth 219M!! at IPO. He bought 13M shares in Series B rounds and 20M? in C rounds too.
Taxpayers’ $465MM- generates profits of $12MM or 2.6% ROR – not a VC Payout
To sum it up, taxpayers took VC risk without VC returns.
https://www.forbes.com/sites/quora/2014/12/29/how-much-equity-did-elon-musk-get-from-investing-in-teslas-series-a/#5707ffa92a9f
http://www.autonews.com/article/20130522/OEM05/130529956/tesla-pays-back-balance-of-doe-loan
There's a lot more time consuming stuff to explain, but this is the best place to start. To keep it simple, Musk loves Series A financing rounds and skims the froth off of low rate government loans. If one of his companies runs into trouble, he misappropriates government loans from his other companies to pick up the slack. He launched a car into space and runs around with a flamethrower to keep the dummies off his trail.
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This is really solid stuff — a lot of it I did not know… I’ve not followed all of Musk’s ventures, but I made some good money in 2014-2015 by being long at the right moments in Tesla.
I still will eventually buy one of his cars… now that the kinks seem all worked out on the earlier S models.
Thanks!
So maybe we need a poll: next blog?
Tesla?
Holmes/Theranos?
The latter may be a shorter one! Over soon!
Hah!
Let me know, by comments… I clearly will NOT have the bandwidth to do both…
Namaste!
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Musk. Is my vote. I think Theranos has mostly gone “poof” already. And nobody feels too badly for accredited investors who get suckered.
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If I recall correctly… didn’t Musk fold Solar City into Tesla after they had burned through most of their cash? It was a little questionable since he was the CEO of both companies. Correct me if I’m wrong on that.
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Musk blog please, Mr. Condor! 🙂 Lizzy is old news.
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