Former pharmaceutical executive Martin Shkreli suffered a roughly $40 million drop in the value of a trading account used to secure his bail following his arrest on securities fraud charges, a U.S. prosecutor said on Wednesday. At a hearing in federal court in Brooklyn, Assistant U.S. Attorney Winston Paes said the account contained mostly shares of KaloBios Pharmaceuticals Inc KBIOQ.PK, a drug company that Shkreli briefly ran. KaloBios filed for bankruptcy in December, wiping out most of its equity value. That caused the value of Shkreli's E*Trade brokerage account to drop to $4 million to $5 million, from the $45 million level when it had been frozen, the prosecutor said. Paes told U.S. District Judge Kiyo Matsumoto that Shkreli may need to post new assets to secure his $5 million bond, which was issued following the 32-year-old's arrest in December. http://www.reuters.com/article/us-usa-crime-shkreli-idUSKCN0VC243
The game only works if you can sell the shares when the lockup expires and before the shit goes ch7. He handed them an account with the shares valued at the halted price. ha, I love it so.