And… Post Mr. Brafman’s Reply — Marty Goes To Jail In About… 24 Hours Now.

Here is the three pager, from Mr. Brafman. It is simply a dead letter. No joke — that’s my experienced opinion.

The fundamental problem is that none of the cases he mentioned involved convicted felons doing these things.

It is not the lawyers’ fault. It is Mr. Shkreli’s — again. He simply thinks this is all a game — a joke. It isn’t.

He’ll wise up now, in a concrete cell, in about 24 — that’s no game.

Bub-bye Marty. Enjoy the can.

I will have more, late, late tonight — on a work deadline now.

Oh. And here is Marty’s one page apology. Too little; too late, sez me.



[U] BREAKING: The Felon Martin Shkreli Has Failed To Meet His Bail Conditions — “Off To Jail, NOW!” Sez US Attorney…

UPDATED: 09.08.2017 @ 2 PM EDT — The able judge has bumped up the date for the hearing, and the correlative dates for submission of briefs. We are now five days away from Marty’s likely incarceration. I’ve updated the order copy, below. I would say this is a strong indicator that the able judge is putting Martin behind bars. 

Of less moment, but also this afternoon, the defense team filed a motion and memo to knock out the conviction on Count 8. It claims an errant definition of “affiliate” drove that conviction. I find that entirely… unpersuasive. I predict the conviction on Count 8 will stand. Still no formal reply from Mr. Brafman — in order to keep his client out of jail.

End update.

Hat tip to FTD — for this truly priceless find!

CNBC has it as well. But here is the motion to immediately revoke his freedom, pending sentencing on his three felony convictions.


Simply lovely — read it all. It seems the Secret Service has had to increase protection around HRC — due almost exclusively to his lunacy.

And — now even his Lauren Duca threats are being cited by the AUSAs:

“…Near the end of his trial and since his conviction on August 4, 2017, Shkreli has made at least two public statements harassing specific women. As has been widely reported, Shkreli was banned from Twitter in January 2017 after harassing journalist Lauren Duca.

In early January 2017, Shkreli had sent Duca a message via Twitter asking her to be his “+1” or companion to the inauguration of President Donald Trump. (See Exs. A & B.)

Duca publicly rejected the request. In response, Shkreli called Duca a “cold you know what” on Twitter and famously changed his Twitter profile picture to a doctored image appearing to show Duca on his lap on a couch. (Id.). This conduct earned Shkreli a ban from Twitter. On July 27, 2017—on the eve of the final trial summations—Shkreli made the following statements on Facebook: “Trial’s over tomorrow, bitches. Then if I’m acquitted, I get to fuck Lauren Duca[.]” He added, “And Anna Kasperian, she’s pretty hot,” referring to a political pundit.

Thus, just as the case was to be submitted to the jury, Shkreli made a public threat against two women whom he dislikes and with whom he has feuded in the past…. ”

Here is the order, for the hearing come one week from today, at 4 PM EDT — in Brooklyn:

….The court will hold a hearing on the government’s motion to revoke bail on September 1314, 2017 at 2:00 p.m. at 225 Cadman Plaza East, Brooklyn, N.Y., 11201, Courtroom 6C South, before Judge Kiyo A. Matsumoto. Defendant shall file a response to the government’s [362] motion by September 12, 2017 at 5:00 p.m., and the government shall reply by September 1213, 2017 at 5:00 p.m. In its reply, the government shall indicate if it intends to call witnesses, and shall advise the court of the anticipated length of the hearing. Ordered by Judge Kiyo A. Matsumoto on 9/87/2017….

Say bub-bye Marty. You have likely lost your pre-sentencing temporary freedom — entirely due to your own idiocy. What a… tool.

The AUSAs definitely have a motivational bulletin board somewhere — with Marty’s endlessly threatening Facebook (and now ebay) posts tacked up. Hilarious.

Yep that’s your karma calling Marty. Buckle up.

Why That Would Be Foolish Dept.: “Buying” The Wu-Tang Recording From A Felon, On eBay…?

Our long term cogent, erstwhile and value-adding commenter (and “head’s up ” provider!) called FTD for short, or “Follow The Dough“… has asked that I weigh in on the Felon X3’s purported offer/auction on eBay — and the related Facebook postings about it.

FTD writes: “…Bidder Q: Hey Martin…what’s going on? I was shocked to find this item on ebay this morning. Incredible. I had wrongly believe this was a vinyl album.. Is it possible that you might clarify what sort of medical research you’ll be donating to? As (I’m QUITE sure) you know, a lot of research is not worth the cash thrown at it. Will you be bound by agreement to donate? Just to be sure, this auction is ONLY for the physical CD and it’s packaging, right? What rights would be conferred to the buyer? WTC still owns the content, correct? So, the buyer wouldn’t really be able to even share this with others, except in a private setting, no? What assurance would a buyer have that WTC doesn’t one day release this material? Don’t destroy the CD set. Of course, you could do so, but it would serve no good end. It’s very cool that you have been a patron of the arts. The WTC album was framed as a sort of publicity stunt, never revealed as part of a pattern of donating to artists. Be well, Donn Sep-06-17
Felon’s A: My plan is to donate half of the sale proceeds to OHSU for rare disease drug research. I know a great researcher there very well who will make terrific use of the funds. The only format available is the CDs–the makers wanted to ensure the format matched the era of the artist. The copyright owner is governed by a complex agreement which will be provided to the bidders who are ‘in the hunt’ at the end of the process. The only copy is owned by me. The artist represented and warrantied this in the purchase agreement….

FTD: Is there a way to confirm if Martin does donate the proceeds, Condor? 🙂

Thanks, FTD. Let’s start with your last question, first: unless you are personally, and tangibly damaged by his failure to complete the gift, and reasonably relied on his promise to make it to your detriment (in this case, if the OSHU researcher went out and bought new capital equipment in reasonable reliance on Marty’s promised gift)… then one could generally (under US law) enforce the gift, to the extent needed to avoid an injustice.

In sum, though, to be clear — it would be unreasonable to rely on this 3X Felon’s word — as to just about anything. So the suit would fail. And thus there will be no way to confirm that he gives anything to charity — other than taking his word for it. His tax returns (like our clown of a president’s) are… private.

Next, it is highly unlikely that any ebay “purchaser” will actually close on this auction (as FTD noted, earlier in comments), once he/she/it sees the Wu- agreement (mentioned by the Felon, above). It has widely been reported that the Felon only owns the right to play it, and only in private settings, not the underlying content. He owns the hard copy CDs, notes, fancy box and the accompanying tangible property — not the embedded IP, as I understand it.

Even if that were not the case, there are at least four (and perhaps as many as ten) separate entities with either a stake in Marty’s assets, or a judgment against them, and/or him — such that they will have a say in whether it may be sold, and for how much. They also have a say in whether any proceeds should be donated — and if so, to whom.

Chief among these four are the IRS and the NY State taxing authorities, They possess a “super lien” against all of Marty’s assets. They must be paid first, unless they consent to the sale in writing. Moreover, his attorneys have liens against his assets, for their fees — of which perhaps up to $7 million remains unpaid. With a stroke of a pen, they can block — or delay — the sale.

Specifically, Judge Matsumoto (if any of the above deems this to be a serious offer, and likely to close) will likely be asked to impound the proceeds. And we haven’t even begun to talk about the right of Dr. Koestler to seize his assets, yet — under a judgment in Manhattan — enforcing an arbitration award against him, personally.

Finally — and not entirely fancifully — any of his putative creditors (whether they hold judgments or are just regular folks stiffed by Marty) could force him into an involuntary proceeding in a federal bankruptcy court, simply by citing Mr. Brafman’s in-court admissions — that his client has essentially become… insolvent. Any of them might do so, so that the Felon could not give away any part of the proceeds, proceeds to which his judgment and general creditors are otherwise entitled, in any such bankruptcy reorganization proceeding.

So… unless all these parties agree in writing to allow the sale to proceed — whoever pays anything to the Felon (X3!)… deserves to be fleeced.

This is a stupid troll’s stunt, only. Strictly for the suckers, in my opinion. As has been most of Marty’s life, to date.

Namaste — and onward. Now you know.

Order Entered, In Manhattan — Approving Payout To Shkreli-Defrauded Retrophin Shareholders…

Here is the full order as entered in the Southern District of New York (Manhattan) a day or so, ago.

As we noted two weeks, ago — the additional $30 million of fraud-laced losses go on Mr. Shkreli’s “relevant conduct” pre-sentencing report — under the still in-force federal sentencing guidelines. See this for calculation of actual losses — at page three, lower right hand column.

At an absolute minimum, we must now say his fraud totals have eclipsed $90 million — since it was in fact, his fraud at KaloBios in the late fall of 2015 that directly led to the drop from around $1.42 per share, to $0.27 per share, this week — as the renamed Humanigen found out that a consortium of not-for-, and non- profits had beat it to the punch in winning a PRV from the FDA — for its Chagas program. [Last year the stock was trading at $4.75… in the NASDAQ Pink Sheets.]

Charming, Marty. Simply charming.

[This also means we will not cover Marty’s reaction to Trevor Noah’s spoof of last night. It was comedic genius, as found by Billy the Kid. Do see the comments to the last post.]

I’m out!

Namaste, one and all…

About A DOZEN (Trivial) New “In Limine” Filings By Mr. Grebel’s Team, Overnight…

…But I will post only one — as I mentioned it here, before.

It is silly to waste time (in a three page PDF, even) arguing that Mr. Shkreli might not be responsible for his own personal statements, and actions, when those have already been determined by a jury of his peers to have amounted to felony (criminal) frauds.

Under our legal system, no one may ever escape personal responsibility for crimes they commit.

No one, that is, unless a gigantic, corpulently turgid Cheeto writes out. . . a pardon. [In that vein, it is smart that “Bobby Three Sticks” is working with the NY AG to bring state level criminal charges against Mr. Manafort — as the President cannot offer any pardon, for any state law crimes. His pardon power is federal, only.] Where was I? Right….

A pardon? That won’t happen here. So — Mr. Greebel ought not put too much stock in this argument.

[And yes, this post (by intentional omission) means this blog will not traffic in any of the Convict’s trolling nonsense about HRC emails — and his potentially being “suicided”. What a sad lil’ guy he is, as his prison date approaches.]

Namaste, to all of good will….

And… In An 85 Page Footnote: Shkreli’s $60 To $90 Million Civil Securities Fraud — Against KaloBios & Its Shareholders

Here is the full PDF file complaint at law, as amended — and filed in the federal courts in San Jose, California Friday — to set out Mr. Shkreli’s highly-likely personal liability here.

It was refiled, so that the plaintiffs there could more completely pursue Mr. Shkreli personally, now that the outcome of his felony trial is known.

All the other formerly named civil defendants have paid up, and settled out — but not so, the 3X felony convict, at right. And so, we won’t cross post it in the  Humanigen review blog, at all. It is not that public company’s issue, any longer.

I’ll quote just a bit, here:

…Between September 2009 and September 2014, he engaged in extensive fraudulent and illegal misconduct at these companies by, inter alia, stealing hundreds of thousands of dollars from MSMB; fraudulently inducing investments in MSMB by deceiving investors as to its insufficient liquidity and as to his own abysmal track record as a hedge fund manager; lying to large investors in stating MSMB’s assets under management as $35 million when they were only $700 and by identifying as MSMB’s independent auditor and administrator firms that had never been hired; deceiving MSMB’s broker by misrepresenting that he had located shares sufficient to cover a failed short sale, when he had not done so, leading to the broker closing at a loss of $7 million; working with his lawyer (who was later indicted) to defraud Retrophin into settling MSMB debts and personal debts, including through use of MSMB settlement agreements disguised as sham Retrophin consulting agreements; working with his lawyer and corrupt employees to fabricate investments by MSMB in Retrophin through concealed stock transfers and backdated agreements; and working with his lawyer to hide settlements with defrauded MSMB and Elea Capital investors as sham consulting agreements with Retrophin, for which Retrophin paid consideration but received no services….

…Investors [in KaloBios] lacked any real visibility into Defendant Shkreli’s personal financial resources and his ability (or lack thereof) to fund any business ventures. Indeed, his public statements and actions falsely conveyed a greater personal wealth and liquidity than he actually possessed, both before and during the Class Period. Yet, the testimony given at his trial and the degree to which Shkreli had to resort to one fraud upon another to pay off liabilities, evidence that his lacked the resources necessary to stave off KaloBios’s bankruptcy and fund its operations, including necessary clinical trials for its drug candidates….

…Defendant Shkreli’s misstatements had the desired effect. On November 23, 2015, KaloBios’s stock reached an intra-day high of $45.82 and closed at $39.50, up over 200% from its prior day’s close of $18.25. At this price, the Shkreli Group’s 70% stake in KaloBios had risen in value to $113,957,500.00…. [Editor’s Note: And so, after he was arrested, and then 15 days later KaloBios was forced to file for bankruptcy protection, the stock was worth $0.90/share. The market cap of the company had plunged from about $162 million, on November 23, 2015 — to just $3.18 million, by December 31, 2015 — a loss to all investors of around $159 million, in under two months…. or, a loss of around $53 million to the non-affiliated stockholders. ]
…Investors were in the dark as to the criminal participation of Defendant Shkreli’s lawyer, Evan Greebel of law firm Kaye Scholer, in the MSMB and Retrophin frauds, for which he was also later arrested, post-Class Period, and now faces his own criminal trial. Significantly, Kaye Scholer served as outside legal counsel to KaloBios during the Class Period and was listed as its “Company Counsel” in the private placement transaction announced and closed during the Class Period (sometimes referred to as the “PIPES” placement or transaction), which defrauded the PIPES investors out of $8.2 million the day before Shkreli was arrested….
Indeed, by the start of criminal trial, Shkreli admitted that he had not paid the legal bills of his defense counsel in this [KaloBios securities fraud] action, that he had not paid monies owed to the IRS, and that he owed payments to accountants addressing his tax problems, such that he asked the judge overseeing his trial to release half his bail money ($3 million) to satisfy these various financial obligations. His own criminal counsel called Shkreli’s promises to pay various six-figure sums “preposterous” and said, “He doesn’t have any cash….”

Obviously, this too is “relevant conduct,” under the federal sentencing guidelines. Do take note, Mr. Brafman:

At least ten… it will be.

So — Evan Greebel’s Lawyers Are Apparently Going To Call…

…Professor Stephen Gillers, as an expert witness, on matters of legal ethics. See the top of page two, of that PDF letter, just made public.

That is… well, frankly… amazing. [Between now and October, I may privately call the able AUSAs in Brooklyn — to share what I know here, independently.]

As I’ve said — repeatedly — I will not cover Greebel’s trial, proper.

And yet, in later posts this weekend, I will mention some new Shkreli tidbits revealed by the passel of six or so pleadings filed overnight, on both sides, in Brooklyn’s federal district courthouse.

But I put this note here, mostly as a placeholder, for the day in October, when Professor Gillers offers his opinions on what Mr. Greebel’s ethical duties were, under New York and federal law, related to the felony securities frauds for which Mr. Shkreli has now been thrice convicted.

I’ve learned that, as one practices in a certain sphere of legal endeavor, for longer and longer periods of time — the world tends to… close in, on itself. Said another way, it turns out that karma is in fact a wheel — spinning back around now — and that early 1990s postings (and actions) on what was then called “Counsel Connect” (indeed, before it became an American Lawyer Media property, and then died in dot com bust number one)… float directly back to present day — here, almost a quarter century later.

Fascinating. Simply fascinating. I will eagerly await the substance  of his opinion testimony, now, before I talk here in public, about it all in any detail — just to be fair to the history, and the professor.

Stay tuned, indeed. Namaste. . . from

— the original ®åïnmån