Martin Shkreli convicted of securities fraud, conspiracy

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Martin Shkreli convicted of securities fraud, conspiracy

Prosecutors alleged that Shkreli repaid investors with cash and stock looted from his biotech company Retrophin, however he was cleared on charges relating to this.

Shkreli was convicted on three of eight charges: two counts of securities fraud and one count of conspiracy to commit securities fraud.

Martin Shkreli verdict: Guilty on two counts of securities fraud, one count of conspiracy from CNBC.

"I'm going to focus not on what people say about me, I'm going to focus on how much more can I learn about medicinal chemistry", he said.

The former CEO of Turing Pharmaceuticals is probably most well-known as the exec who in 2015 ordered a 5000% price hike on a prescription drug to treat an illness that afflicts AIDS patients and others with weakened immune systems. When he made bad trades and lost money put into MSMB, he simply attracted more investors by claiming to be making money. During that time he is believed to have misled investors and covered up losses by doling out stock in Retrophin, his pharmaceutical company.

When the first guilty verdict was delivered, Shkreli looked to his right with a surprised smirk. The hedge fund investors got their money back with interest.

Even the mixed verdict was a shattering defeat for the divisive Shkreli, who said before the trial that he was "so innocent" that the judge, jury and prosecutors would apologize. Shkreli has loudly maintained his innocence since his arrest.

Shkreli's lawyer Ben Brafman is expected to make comments on the decision momentarily. But that's not why he was found guilty of fraud today (Aug. 4). But Martin Shkreli is not most federal felons. And during his trial, Shkreli delighted in telling reporters that he could do anything while his attorney visibly recoiled in response.

John Zach, a former federal prosecutor who is now a defence lawyer at the law firm of Boies Schiller Flexner, said the fact that investors did not lose money could help Shkreli get a lighter sentence.

In addition to talking about his case, Shkreli talked about the exclusive Wu Tang Clan album he famously purchased.

The "most hated man in America" just got a taste of the US justice system.

The most serious count, securities fraud, carries a maximum prison term of 20 years.

After the conviction, Shkreli said that he was he was glad to be exonerated on numerous charges and "we're delighted in many ways".

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