[U: Or.. NOT.] Likely My Last Post, Here — On Mr. Greebel’s Trial, Proper.

UPDATED @ Noon EST — 12.29.2017: Welp, something is clearly afoot, likely related to jury matters, in the Greebel trial. The able, level headed Judge Kiyo Matsumoto just effectively ordered that briefs be drafted by both sides (while watching bowl games) on New Years Day, and the day after, as to some matter or issue discussed this morning, by an unscheduled telephone conference, thus:

“…Minute Entry for proceedings held before Judge Kiyo A. Matsumoto: Telephone Conference as to Evan Greebel held on 12/29/2017. Appearances: Alixandra Smith, Esq., David Pitluck, Esq., and David Kessler, Esq., for the government; Reed Brodsky, Esq., Randy Mastro, Esq., and Joshua Dubin, Esq. for defendant Evan Greebel, also present. The court ordered supplemental briefing by January 2, 2018 at 6 p.m., with responses, if any, by January 3, 2018 at 2 p.m. (Court Reporter David Roy.) (Tata, Vivek)….”

From the looks of that, this must go to the heart of some part of the rulings at trial, or the conduct of one or more jurors. So this won’t be the last Greebel post, after all. Assuming there is no reason for me to withhold these pending letter briefs, you may expect to read them here on Tuesday and Wednesday, respectively — as PACER publishes the same.

It could be a simple matter, but that seems unlikely, given that we already have a verdict, and the jurors have been released (i.e., what’s the rush, here?). All the more unlikely given that below is the usual post trial matters schedule. I suppose it could be a request for a last vacation out of the country, on the part of Mr. Greebel — which usually a convicted felon would not be granted… but I honestly have no idea.

Stay tuned. [End, Updated Portion.]

12.28.2017: Here is what Mr. Greebel’s post trial calendar looks like, at present — in the order entered overnight — by the able Judge Matsumoto:

Defendant’s post-trial motions shall be filed by February 7, 2018; the government shall file its opposition by March 7, 2018; and the defendant’s reply is due by March 21, 2018. (Court Reporter David Roy.) (Tata, Vivek) Modified on 12/28/2017 (Galeano, Sonia)….

All of which points toward a likely late May or early June 2018 sentencing date, assuming there are no hiccups. But there are very likely to be far more scheduling hiccups here, than with old Marty.

Mr. Greebel (and his counsel) will find a way to stretch the schedule — since he is not likely to have to surrender, until after sentencing (entirely unlike Marty).

Now you know. [Separately, from a 12.28.2017 minute entry, we’ve learned that there were eight separate juror notes, from various jurors, but three jurors created at least six of them — during deliberations.]

Nota Bene: And in the comments below, shortly (like tomorrow) will be the November and October withheld Greebel trial materials, once again in reverse date order. The December 2017 ones are in the comments to the original post announcing his conviction, of yesterday.



Interesting Hints — Of Misappropriated IP — Related To A Formerly Shkreli-Controlled Company…

This is cross-posted, from the other property which tracks the damage Old Marty did to a public life science company then called KaloBios, now called Humanigen. It officially remains in bankruptcy, and now needs a new set of discovery hearings there, in order to clear its latest debt for equity swap/reorganization re-cap. Without additional ado, then:

Well… an anonymous commenter wrote last week that we were missing “an important part of the story” on the benz program, as it pertained to the “debt for equity” swap deal announced December 21, 2017. I think the below is what s/he was getting at. [So… thanks for the tip — but nothing like this appeared in the December 21 materials.]

Significantly, even after these overnight SEC filings (another SEC Form 8-K), the ACTUAL constituent legal documents — though described as “definitive” (i.e., fully-negotiated, if not signed just yet) in the press release — are not being made public. Not just yet, at least.

This company is still a full ’34 Act reporting company. Its stock is traded OTC every business morning. And that stock has risen significantly, since December 21.

So these documents ought to turn up in pretty short order, as amendments to the Pre-Effective SEC 14C Information Statement (if nothing else) just filed.

Until then, though, we are relying on management’s descriptions of the terms of the deal, exclusively. And to be clear, I am sure that the current management is fastidiously honest (in stark contrast to Mr. Shkreli’s stint as chair and CEO — in late 2015).

All that wind up is to say that I’ve revised the masthead, above, because the descriptions provided suggest that management (and perhaps some Nomis Bay related entities) believe some part of the benz IP assets were misappropriated by third parties, in order to garner that lead on the FDA PRV. [That’s the diamond in the rough, here, of course — worth perhaps $300 million, in an existing aftermarket in such vouchers.]

It seems that this “misappropriation” may have occurred separately from the events that center on the dispute with Savant — over funding obligations of the latter, for the benz program dating back to mid-2017.

But I suppose it is possible that the sharp end of the spear in the coming Rule 2004 bankruptcy court discovery hearing and process will lance Savant, here — as having trafficked improperly in technology and IP that it learned about whilst engaged with KaloBios (now renamed as Humanigen) in developing the would be benz FDA submissions.

Or it might point to someone else, entirely. [Okay, this may seem a lil’ crazy — but could Old Marty have interfered, prior to getting locked up? Hmmmm….]

Even so, it seems that some substantial factions connected to the Nomis Bay investors, and some inside the company believe that there may still be a path to receiving at least a judicial/court ordered royalty (in the form of a “willful infringement” tripled running payment) — or outright return of ownership, by similar order, in the exercise of the bankruptcy courts’ equitable powers — by way of hearings, in the coming weeks and months.

But this is all dubious at best, as nothing along any of those lines has yet been filed in Delaware’s federal bankruptcy court — as of this morning, December 28, 2017.

We will keep a weather eye on the horizon, as to all of this, to be sure.

Have a safe, and fireplace warmed — New Years!


[U] Wednesday @ 3 PM EST: Evan Greebel — Shkreli’s Lawyer — Guilty On Both Felony Counts

Thanks go to Malncka, in comments. This is very bad news for Marty — as now two separate juries have come to the same conclusions — on much of the same evidence. His appeals are likely… toast. [My much earlier backgrounder may be found here.]

More as I have it, but here is a bit — from Bloomberg:

“….Greebel was expressionless as the verdict was read in federal court in Brooklyn, New York. His wife, sitting in the gallery, burst into tears….

Greebel was convicted of conspiracy to commit wire fraud for helping Shkreli steal from Retrophin and conspiracy to commit securities fraud for helping Shkreli manipulate company shares….”

Now it will be fascinating to see what Marty has his surrogates post on Facebook, later this week.

Will old Marty dig a deeper sentencing hole for himself — by impugning the integrity of the process, and the law?

We shall see. But (back to Greebel) two felonies are never a good look… for a Wall Street lawyer’s resume. He is likely disbarred very shortly, as both felonies involved deceit.

UPDATED @ 5 PM EST — I will post month by month lists of the documents I’ve been curating, but not disclosing — until we had a verdict. December is up in comments below — November likely tomorrow; October by Friday. Looks like about 30 to 40 documents in all.

I should also mention that as to Mr. Greebel, I do not expect to see anywhere near the stretch of sentence that we will see for Mr. Shkreli, come February 2018. [Mr. Greebel’s sentencing is likely to be late May 2018.] The two are very different cases (in the culpability, and pervasiveness of of the schemes; as well as on Mr. Greebel’s generally stellar prior record).

He may do less than a year. Marty may do ten times that.


Wed. 12.27.17 Noon Update: Deliberations Continue — One More Juror Dismissed (Likely For Illnesses)…

And so… we wait on a verdict — up or down — just as we did for old Marty. Here is the overnight summary docket entry:

“…12/26/2017 — All jurors were present; Juror #6, sitting in seat 4, was dismissed. Jurors deliberated; deliberations to be continued on 12/27/2017 at 9:00am. (Court Reporter Annette Montalvo.) (Tata, Vivek)….”

Last week, there was a discussion on the record of one juror being too ill to travel. My hunch is that the able Judge Matsumoto has replaced that juror, so as to allow the jury to function both efficiently and with some certainty. This is why we have alternates. It seems clear that counsel for both sides did concur — as there were no motions in opposition, overnight.

But we will wait for official confirmation of these facts, in due course. At this point it is all simply my informed conjecture.

Onward — as a frigid but clear and sun-dappled Namaste — is offered, here.

O/T: And… In A Med-Tech “Nativity Miracle”? Theranos Gets A New $100 Million — From Fortress?!

I guess someone really did believe in the Santa “Clause”. It is not clear why anyone would, in the case of this company — but… okay, whatever.

This is an update to this one, of sorts, for Billy the Kid — on Ms. Holmes’ ongoing magical mystery (of alleged frauds) tour. [If we cannot understand the wisdom of $3 million of continuing funding for a company now called Humanigen — I am sure we cannot understand $100 million for Theranos. In the former, Black Horse has little left to lose; in the latter, $100 million is a lot of good money — to be thrown after bad.]

Per Yahoo! Finance:

“…By the end of 2016, the company reportedly still had $200 million in cash on hand, but had sharply limited prospects for attracting more capital. It has since settled a major lawsuit with Walgreens, a former client, for an undisclosed but likely substantial sum. According to the Journal, the Fortress loan is expected to keep Theranos solvent through 2018.

That will give the company more time for its ongoing effort to reboot as a medical device manufacturer, rather than a testing service. That pivot came after the FDA revoked a laboratory license and banned Holmes from involvement with laboratories for two years….

According to statements from Theranos, the Fortress loan will be conditional on “achieving certain product and operational milestones.” It’s unclear whether those might include positive outcomes for the multiple investigations and lawsuits still facing the company….”

Now you know — Merry Chriistmas!

While We Wait… For Jury Deliberations To Resume…

I will post this — even though in truth, the Grinch in me suspects this might be why the “friend” decided to agree to curate Marty’s facebook account, post his incarceration, in the first place:

“….My good friend, and huge supporter from day 1, Sheldon Gunby, has run into some very bad luck lately. He has been facing many chronic medical issues over the past few years, including the removal of his colon and 3 reconstructions of his spine.

In a vicious cycle that happens all too often, he cannot work due to his illness, and therefore cannot afford health insurance, or even some necessities like rent, medicine and internet access. Also we are reminded that prescription drugs are not the large cost in healthcare–none of Sheldon’s large costs relate to drugs, but hospital stays and procedures. Those prices have inflated as fast, and in some cases, faster than prescription drugs. We need some solutions for healthcare, not indiscriminate and thoughtless blame.

Join me in giving some holiday spirit to the Gunbys in their time of need by donating here: paypal.me/coatneigh. Any donation over $100 will get a special gift from me and any favor you wish (within reason).

[posted by a friend (of Marty) at the request of the profile’s holder]...”

There is some deep irony in their/his Christmas appeal — with “special gifts” from Marty, for anyone giving more than $100 — and the gratuitous suggestion that drug prices aren’t an important part of the problem.

So I will leave it right there, without any actual links. If you wish to donate — or comment — you may find it by going to Marty’s Facebook page.

That’s all I’ve got.

[U] VERY Drawn-Out Closing Argument From Defense; Continuing Tomorrow, Into Friday…

UPDATED 12.22.17 @5:15 PM EST: The jury has begun deliberations this afternoon — but has reached no verdict yet. They will be back at 9 AM on Tuesday the 26th, to continue their work. We will post the 30 or so withheld letter briefs during the day Tuesday. [End, update.]

I am relying on the very helpful thumbnail notes tweeted  from Christie Smythe’s Twitter-feed, here. She was apparently live in the courtroom today. And from the PACER feed:

The defendant’s closing arguments shall continue on 12/22/17 at 9:00 a.m. in Courtroom 6 C South before Judge Matsumoto….

We have reached the more than 10 hours of solid closing arguments mark — and will now surpass it, in the Evan Greebel trial, in Brooklyn. After the defense summation concludes, the prosecution gets one last rebuttal, as R.West reminded us in comments, under federal Rule 29.1. So it is possible that the jury won’t get the case before Christmas. Or they might get it by noon on Friday…. but these two count summations have run longer than Marty’s eight count summations, now.

One theory — which I think may explain this drawn out approach is that the defense doesn’t want the jury to get the case, and then rush, to be home for Christmas.

That theory would hold that the jury will forgive the defense for boring them to death, and will come back with fresh eyes and ears after Christmas to deliberate (and, I suppose the defense believes)… exonerate Mr. Greebel.

I credit Ms. Smythe this afternoon — for hinting at this — by calling it a “defense filibuster,” today.

In my opinion, if the AUSAs are smart, they will just say in rebuttal tomorrow — “The evidence is overwhelming. He is guilty, We rest, your honor.”

Then perhaps, the jury will get the case by noon — and they may return a guilty verdict, for that overwhelming evidence reason [and the reason that the defense wasted a full day of their pre Christmas (shopping) time].

I still think he will be found guilty of at least the securities fraud conspiracy charge. [That one turns on the back-dating of stock transfers.]

But either way, on to Friday we go. I genuinely don’t think the defense can create an acquittal by filibustering until after Christmas. But we shall see.