T.S. Eliot Was Right: Not With A Bang — But With “A Whimper” — Marty-World… Draws To An End.

First off: Credit for this whole story goes to erstwhile long time commenter Malncka. Thank you, for the lead! [And a CNBC backgrounder.]

About fourteen months ago, Gödel Systems filed an SEC Form D, saying it needed to raise $1 million, in a private offering. It had only $50,000 committed, at that point — January 31, 2017.

So… Mr. Eliot was right (again): as with all things Marty, the Gödel story is ending with a whimper — just as his sentencing speech, from his own mouth, did a week ago, Friday.

Under applicable SEC ’33 Act rules, then, a “closing” Form D was due a month and a half ago.

But there’s been no such filing (even though no fee need be paid, to make the filing — and it could have simply said that $50,000 was all Marty was able to raise — sheesh). Many of the one-time, now ex-Gödel staffers list the company as a former position, on Linkedin — and most tellingly, as a systems company, the website had been dead stick for more than a week (the screen imaged at right usually appears when the hosting bills have gone unpaid for months).

So, the “very elite” — beta site is… no more. But this parody site (poking fun at Marty’s “very elite” beta mantra)… lives on. Hilarious!

All of this is really just trivial filler material, until the unsolicited letters emerge, in full.

If we don’t have them by Friday, the 23^rd, I will run the pull quotes from the able Judge’s on the record remarks from the bench, about them, from Marty’s sentencing hearing on March 9, 2018.

Namaste… and onward, on a fine, freedom-filled Monday!

[U, X3] Time To… “Get REAL”: Marty In His Own, UN-Redacted Words…

UPDATED: 7 PM EDT — In an exceedingly balanced fashion, Dan Mangan, reporting at CNBC, has put out the parts I was considering holding back from public view — so I’ve released my entire copy of it as a PDF. End update.

The government’s largely unredacted sentencing memo (again, weighing in at 70 plus pages) is now available. AND UPDATED: [In an intentionally ironic homage to Marty’s own words “Fix the F-in’ problem!” ] F* it — here it is — all 70 pages of it. There is no complete psych report. But what is there is deeply disturbing, about Marty’s endless lying — right up to sentencing day….

I may not post all of it Still ruminating on it; but if the MSM posts it, I will too — free of charge here — because as to some of it, Marty’s actual diagnosis, probably ought to remain private… but to the extent he “faked” a few symptoms — as a (vain) attempt to win a lighter sentence, I am going to run those parts in full:

…Finally, it is notable that Shkreli’s own correspondence indicates that he sees even [his own expert,] Dr. Salsberg’s report itself as a means to an end. On January 8, 2018, prior to receiving Dr. Salsberg’s final report, Shkreli stated in email correspondence from prison that he was “going to enjoy the psych test results.” Shkreli then discussed having [the] report disseminated publicly because, as he stated, “I want to watch the press squirm when they see I have a 150 IQ and no overt psychological issues.”

….Shkreli [also] wanted to use the report as a means to prove his intelligence to members of the press with whom he frequently disagrees….

[SNIP]

….The government raises two concerns with letters of support submitted by Shkreli. First, the government notes that Shkreli received a letter of support from an individual named Yuan Wang, who met Shkreli at a lecture Shkreli gave at Princeton University in the spring of 2017.

As the Court may remember, Shkreli had promised a $40,000 scholarship to Wang after he solved a math theorem, and the government cited that promise in opposing Shkreli’s bail modification motion on June 19, 2017, noting that Shkreli clearly had access to significant funds if he could offer $40,000 to a student on a whim just before the bail hearing. June 19, 2017 Conference Tr. at 19. In response, counsel for Shkreli noted that the examples cited by the government, including the promise to Wang, were “preposterous promises that Mr. Shkreli has made in recent weeks [that] have never been paid forward.” (Id. at 25). And, in fact, Shkreli did not actually pay Wang the $40,000 — as Wang’s letter states, Shkreli offered him a “generous scholarship” to put towards Wang’s start-up company. What neither Wang’s letter nor Shkreli’s sentencing memorandum mentions is that Wang was not paid that “generous scholarship” until at least February 21, 2018 — mere days before Shkreli’s sentencing submission was made. Email communications between Shkreli and others, including co-conspirator Kevin Mulleady, indicate that Shkreli told Mulleady and another individual that he owed “a guy” $15,000, and asked for money to help pay the debt; in a subsequent email on the same day, Shkreli provided Wang’s address to Mulleady.

Second, the government notes that an individual named Amber Emmertz who submitted a letter of support on behalf of Shkreli (Shkreli Mem. Exhibit 39) subsequently wrote to the Court to withdraw that letter of support, claiming that the decision to write the original letter was a “poor decision”….

I will add more in a few minutes — but This guy is a 110 per cent straight up con-man. Even about his (really quite rudimentary) understanding of bio-chemistry.

Namaste — I am sorry to tell the Marty supporters this, but there is very little about him (that you think you know, from his own mouth) that will ever ring out, to be true, to any objective oberver.

~~~~~~~~~~~

^{Post scriptum: March Madness and pre-St. Paddy’s night party, at the law alumni center call… to toast the Ramblers! Hah!}

^{Yikes! Let’s hope they live to see the Sweet 16… but a Jesuit university, with a 98 year old penguin on the bench — playing at 5 pm on St. Patrick’s?!}

^{I’d venture there is no Jesus, if they DO NOT win, on another miracle from deep as time expires!}

^{(Please forgive my arguable blasphemy… I’m a recovering Catholic!)}

Namaste!

AUSAs Decide To Defer — To Bureau Of Prisons — On Marty’s Permanent Home.

The letter is finally up. The AUSAs are (appropriately) placing the decision — on type of facility — mostly in the hands of the federal agency tasked with handling convicted felons. The AUSAs will express no opinion (in a two pager, deferring for a bit on restitution as well), thus:

“…First, the government takes no position on the defendant’s request that the Court make a recommendation that the Bureau of Prisons (“BOP”) designate the defendant to a particular facility. Ultimately, “the designation of the place of confinement is within the discretion of the Bureau of Prisons.” United States v. Jimenez, No. 04 CR 739 GEL, 2006 WL 2838504 (S.D.N.Y. Sep. 28, 2006) (citing United States v. Williams, 65 F.3d 301, 307 (2d Cir. 1995)); see also 18 U.S.C. § 3621….”

Given that an arm of the BoP calculated Marty’s offense level as a 41, last week (recommending at 27 to 34 year stay) — this cannot be a good sign.

What it all means is that the BoP determination will be likely final — forcing Marty to file a subsequent appeal — to Judge Matsumoto if he feels he has been incorrectly (or selectively mistreated in the) assigned facility determination.

I doubt very much that Judge Matsumoto would over-ride, sua sponte, a BoP determination of placement — here, at the front end.

But we shall see….

Onward — and GO RAMBLERS! — will they, and Sister Jean Delores Schmidt (at 98 years young!) pull off an “Our Lady of Fatima” style miracle against the Tennessee Vols this weekend? We shall see, as well!

I Decided R.West’s Deserves A Post Of Its Own… “Rejection Letter” — From Canaan Univ.

I must admit — I had great fun making the graphic for this one — so I will run it as a new post: I give you the comedic stylings of Mr. R.West — who has penned an Ivy League-worthy Canaan University “rejection letter” — to Marty, overnight:

Martin’s rejection letter from Canaan University… uh, I mean prison camp:

“Dear Mr. Shkreli:

The Admissions Committee has carefully considered your application and we regret to inform you that we will not be able to offer you admission in the entering class of 2018, or a position on one of our alternate lists. The applicant pool this year was particularly strong, and by that I mean… there’s a lot of crime out there!

However, you will be pleased to know that you have contributed to our declining admissions rate, which has helped our prison camp appear more exclusive, to white-collar criminals. We urge you to consider your acceptance letters from lesser but real federal prisons… and commence nursing an inferiority complex for the rest of your life.

Best,

/s/ Warden”

P R I C E L E S S !

New Commenter “Scott” Report: Marty Slashed “LOTS Of Heads, Last Week…” At Vyera.

And… still we wait for tonight — and the AUSAs’ opposition — to Marty’s request for a “Club Fed” incarceration assignment….

But I thought it best to “turn the page” this dawn — away from Ms. Holmes (she’s had plenty of Ayn Randian attention in the last 24 hours!) — and back to our usual (and arguably every bit as interesting) narrative lines. Smile.

In that regard, new commenter “Scott” informs us that contrary to Mr. Shkreli’s tearful “changed man” speech — “I’m in it” to give humanitarian jobs to employees of Vyera (via his lawyer’s presentation in court last week)… IN FACT, from his cell in the Brooklyn MDC, he ordered quite a large number of firings by Saturday morning, post-sentencing — at privately held Vyera Pharmaceuticals, in Manhattan.

The latest information suggests that Marty owns just a shade under 50 per cent of the company, but remains the largest individual equity holder. So he almost certainly made this decision. He has fired a bunch of people, even as he represented to the able judge (through counsel) that he was earnestly trying to protect the livelihoods of his employees, and maximize the value of Vyera, so that his manifold judgment creditors might be paid a larger portion of their losses — from the frauds he occasioned upon them.

I hope Judge Matsumoto’s clerks look in again this morning, to read this, and report it back to her honor. To Scott, then:

“….Anyone else happen to see that right after the Sentencing on Friday, [Mr. Shkreli] initiated another bloodletting Saturday morning at his Vyera company that he apparently still runs from Jail?

Chief marketing officer and bunch of others fired hours after the sentence. Apparently in context of arguing to judge he is a “changed man”, didn’t want to create anymore enemies or notoriety doing it before.

But now, this potentially puts even more patients at risk of death of not getting the drug, all because he gutted the company, and just has his former hedge fund cronies as CEO and CFO who have never had corporate positions before in their lives in these high paying positions, and will never get another job even close to that.

Unbelievable that government doesn’t do something about this, people literally likely to die, because MS continues to run the company from prison, make decisions like this as he is being sentenced….”

Indeed — we have no reason to believe this is not accurate. [If it is not, we invite Turing/Vyera management to correct us, in the comments-box, below.] Always a wrinkle, with that goofy guy, Marty….

Namaste — but before we go, and catch a train to the Loop — I will leave you with the comedic stylings of R.West — who has penned an Ivy League-worthy Canaan “rejection letter” — to Marty, overnight:

Martin’s rejection letter from Canaan University …uh, I mean prison camp:

“Dear Mr. Shkreli:

The Admissions Committee has carefully considered your application and we regret to inform you that we will not be able to offer you admission in the entering class of 2018, or a position on one of our alternate lists. The applicant pool this year was particularly strong, and by that I mean … there’s a lot of crime out there!

However, you will be pleased to know that you have contributed to our declining admissions rate, which has helped our prison camp appear exclusive to white-collar criminals. We urge you to consider your acceptance letters from lesser but real federal prisons … and commence nursing an inferiority complex for the rest of your life.

Best,

/s/ Warden”

P R I C E L E S S !

[U] An [Unrelated] Epilogue, Of Sorts — As We Await The AUSAs’ Thursday Evening Filing…

UPDATED @ 3 PM EDT On 04.10.2018: In order to delay or stave off a bankruptcy filing Theranos this morning laid off essentially all its remaining employees. End update.

Billy was handed an early St. Patrick’s Day present today, when the SEC announced settled civil charges against Elizabeth (A., for Ayn Rand) Holmes, the “kingqueenpin” behind Theranos.

The voluminous SEC complaint against Ms. Holmes has been widely disseminated.

What has not been seen until now, are her “civil deal” documents — with the SEC. To be clear, this six page judgment, and the eight page order settling… formally DO NOT resolve any criminal charges. At least not today, they don’t….

But as I told Matt Herper earlier today — I’ll be surprised if it does not turn out (eventually) that there is a deal to take criminal charges off the table, for her personally, as well.

We know she is diming out Sunny. What I didn’t know (and YellowButterfly reliably informs me) is that Sunny was (allegedly)… at one point, her lover(!?). Ouch.

And it isn’t likely that the kingpin would flip on subordinates, unless it would get her immunity in exchange for truthful but highly damaging testimony (against Sunny primarily).

I’ll keep an eye on the federal criminal docket on this one, too — just for grins.

Namaste — crazy world!

Marty Requests Placement In Minimum Security Camp USP Canaan, PA

I’ll have more in a minute — including the whole three page letter — but he is asking for a “camp fed” placement — in Canaan, Pennsylvania.

Should he be treated purely as a non-violent first time offender?

Or should the US Secret Service’s assessment of him, as a threat to himself, and society at large, hold more sway?

That is what is at stake here: a minimum security camp (some say “Camp Canaan” is more akin to a small college campus — i.e., no high walls; distant, mostly obscured fences)… or a medium security hardened federal prison?

A place only a touch better than the Brooklyn MDC Marty now calls home…

Which will it be?

Now we wait to see the able AUSAs’ suggestion — on Thursday.

Namaste….

While We Wait, For Tuesday — Some More TRUTH About Marty’s… “Character”.

This will be a short one — as it has been reported extensively, in hip-hop source outlets. [And it is merely cumulative, as to the AUSAs’ evidence of his past conduct….]

The graphic at right really says it all. [Even so, here is our backgrounder, from early 2016, at the original KaloBios bankruptcy blog, on it all.]

Let’s be clear: where Marty is now held — in the Brooklyn MDC — is a veritable country club… compared to Rikers.

Marty apparently helped finance this rap artist — and then, apparently visited this rap artist just once in Rikers, while Mr. Pollard was awaiting a final determination, on his bail amount, to be set at a then-distant hearing date.

Marty widely proclaimed on social media that he (Oh “Magnanimous Marty”) would bail Bobby out — given how awful the conditions at Rikers are. [Marty planned to have Mr. Pollard record exclusively for him, to recoup the bail bond stake, it appears. So it always was about a quick buck, for Marty, in my opinion.]

Then Marty flat-out abandoned him. So he had to take a plea, since he didn’t have $2 million — and wouldn’t have survived very long in Rikers, awaiting a trial, some four years off.

Now Bobby is in Clinton (i.e., a better place — but still a real prison) — and, his release date is likely mid-2020….

Classy move, Marty. Classy.  Now you know.

And please do note the irony — when Marty files his papers on Tuesday — to say he needs to be placed at a “camp fed” facility, due to HIS fragile condition.