Earlier this month Martin Shkreli, the man who became infamous for jacking up the price of an AIDS medication, was convicted of securities fraud for the mismanagement of investment funds. But even a criminal conviction doesn’t seem to have humbled the 34-year-old pharmaceutical company founder. Shortly after the guilty verdict, Shkreli began a YouTube live stream from his New York apartment. As he held a beer, Shkreli predicted that a prison sentence – if he actually gets one – will be akin to a Club Med trip, where he’ll play sports and Xbox for a few months.
$11 Million Ponzi Scheme
Shkreli is accused of running a Ponzi scheme that cheated investors out of millions. More than $11 million, to be exact. The fraudulent activity allegedly occurred between 2009 and 2014, while Shkreli was CEO of Retrophin, the pharmaceutical company he founded. According to the prosecution, he used Retrophin funds to pay off investors and cover personal debts, while misleading investors as to how well their funds were performing.
“Shkreli misled investors in his self-indulgent scheme,” said FBI Assistant Director-in-Charge William Sweeney. “Today’s conviction shows that those who corrupt the market will ultimately be brought to justice.” A Boston criminal defense lawyer can help you determine how to proceed if you’ve been charged with securities fraud or any other crime.
The Most Hated Man in America
Two years ago, Shkreli gained notoriety when he dramatically increased the cost of a lifesaving AIDS medication from $13.50 per pill to $750. Soon after, the Daily Beast called Shkreli the “most hated man in America.” Despite the hate, Shkreli also – disturbingly – gained some fans. He quickly acquired a YouTube following of about 200,000; streaming video of himself playing games in his pajamas and out gallivanting around New York.
In response to his recent conviction, Shkreli had the following to say: ”This could have been a real big setback for my life, but it’s gonna end up being a footnote in my life.” He believes he has no more than a “50-50” chance of ending up behind bars, and that any jail time would likely be short lived. He went on to say – speaking in the third person, “It doesn’t seem like life will change very much for Martin Shkreli, basically ever. I’m one of the richest New Yorkers there is, and after this outcome, it’s going to stay that way.” Despite his social media-bravado, if convicted, Shkreli may face up to 20 years in prison. A MA criminal defense lawyer can help you protect your rights if you’ve been charged with securities fraud.
Penalties for Securities Fraud
Individuals convicted of securities fraud may face both civil and criminal penalties. These may include:
- Fines of $10,000 or more
- Fines of up to $5 million, if insider trading is involved
- Restitution (money paid to victims, in addition to fines)
- Incarceration in a federal prison
Altman & Altman, LLP – Criminal Defense Law Firm Serving All of MA
If you have been charged with securities fraud or any other type of criminal offense, the skilled legal team at Altman & Altman, LLP can help. We have been protecting the rights of individuals charged with crimes for more than 50 years. We will thoroughly evaluate the details of your case to determine the most appropriate legal strategy and will position you for the best possible outcome. Our experienced, knowledgeable attorneys will fight tirelessly to protect your rights, reputation, and freedom. We have extensive knowledge of this area of the law and an impressive track record of getting clients’ charges reduced or dismissed entirely. If you are facing criminal charges, we can help. Contact Altman & Altman, LLP today for a free and confidential consultation about your case.