'Pharma bro' Martin Shkreli convicted of securities fraud, conspiracy


He was acquitted on five other charges.

Prosecutors on the other hand, claimed that starting in 2009, Shkreli lost money in two of the hedge funds he ran, hid that from his investors, and instead paid them back with money he obtained from Retrophin. He was also found not guilty of conspiracy to commit securities fraud.

Former drug company executive Martin Shkreli has been convicted of fraud by jurors in a U.S. court after a highly publicised, month-long trial.

He later made headlines when he purchased the single copy of rap group Wu-Tan Clan's album Once Upon a Time in Shaolin for US$2 million. The charges for this trial weren't related to that price hike; they stemmed from events earlier in his career while he managed hedge funds. Shkreli raised millions for MSMB Capital, but not as much as he told investors.

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Federal prosecutors said Shkreli mismanaged money at the investment funds Elea Capital, MSMB Capital and MSMB Healthcare, as well as while he was CEO of Retrophin, a pharmaceutical company he founded in 2011. Retrophin directors testified that they did not approve those agreements in advance.

His lawyer, Benjamin Brafman, framed his client as an oddball genius who ultimately made his investors richer.

The charges were unrelated to Shkreli's first claim to public notoriety: raising the price of an anti-parasite drug called Daraprim by more than 5,000 percent in 2015, while heading another company, Turing Pharmaceuticals.