- No investors in MSMB lost money( allegedly) - MSMB starting winding down late 2012. Investors got most of their money back in a cash settlement( Although Shkreli stalled for months on settlements). From what we know, settlements were in 2013-14 + shares in Retrophin. The Retrophin IPO was early 2014. Well before any fraud investigation, the Retrophin IPO is what started the whole thing. - Because of some unusual dealings and exceptional gains Retrophin made, it is thought that Shkreli was first investigated for insider trading, not fraud. He went to "clear things up" with the FBI in early 2015( without a lawyer), bragged about returns/ profits, and ended up putting himself in the hole, and was 10 months later charged with Securities fraud. -Shkreli's defense are arguing that the transactions that took place between Retrophin & MSMB were done legally, with outside counsels blessing & board approval, and evidence will be given to support this. This is incorrect on all accounts.: Ms. Hassan invested 300k into MSMB. Months after first requesting her funds were returned, she received 400k in cash( 100k profit) + 58k shares in Retrophin. - She sold the Retrophin shares for atleast 900k . Total profit of 1million+ Based on a tip off from Shkreli, she also invested 125-150k into Retrophin, through a family hedge fund that she controls( Her father is Fred Hassan, former CEO of Schering-Plough). She sold these for a realized profit of 1.3 million. Total profit made from investing with Martin Shkreli = 2.3- 2.7 Million
You can play fan boy as much as you want. The numbers you just put up don't reconcile with all the information that is out there. And even if he goes to prison for 6 months, only, his butthole better be well lubed because the rape boys are gonna rip him a new one.
"It was only after almost a year of being told of MSMB's wind-down that she managed to get $400,000 in cash paid to her by Retrophin — not Shkreli —,and more than 58,000 shares of Retrophin stock. But that came only after she agreed to sign a settlement agreement and promised not to sue for over the situation. She later sold those shares for $900,000, she testified. And her family's hedge fund, Dynagrow, which she manages, itself realized a profit of almost $1.3 million after selling Retrophin shares it had acquired as a result of a $125,000 initial investment by that fund, Hassan testified" -http://www.cnbc.com/2017/06/29/investor-in-martin-shkreli-fund-felt-betrayed-by-pharma-bro.html "Shkreli complained that those headlines did not highlight the fact that she ended up getting a total of $1.3 million in cash combined with the proceeds of sales of Retrophin stock given her. Her own family's hedge fund, which she manages, netted even more from selling Retrophin stock it had acquired as a result of an initial $125,000 stake in the company. "How can a victim make $2.7 million?" Shkreli asked. "She's not a victim." -http://www.cnbc.com/2017/06/30/shkreli-blasts-prosecutors-as-junior-varsity-to-reporters.html "Hassan said she felt “betrayed” when she learned the fund was closing and the money was gone, even though she ultimately made a $2.7 million profit after selling all her Retrophin holdings. " https://www.bloomberg.com/news/arti...-fund-went-from-success-to-bust-in-31-minutes
-- In February 2011, Shkreli founded Retrophin, a pharmaceutical company. -- That same month, Shkreli made a really bad bet shorting a biotech company called Orexigen Therapeutics. He lost $7 million for his hedge fund. He suffered $1 million in other trading losses too. With under $60,000 of assets left, MSMB halted all trading. -- Shkreli continued to send investors progress reports about MSMB Capital as if the company were still a healthy company, according to federal prosecutors in an indictment in December. -- Federal prosecutors say that between February 2011 and September 2014, Shkreli and an associate funneled money out of Retrophin to pay off debts owed by MSMB and by Shkreli, personally. 2012 -- In December 2012, Shkreli made a series of fake, backdated transactions to make it look like MSMB Capital had invested in Retrophin, the FBI says. 2013 -- Retrophin investors began to catch on, and seven demanded money from Shkreli. Between February 2013 and March 2014, Shkreli forced Retrophin to settle with the investors for $11 million, but he didn't ask the board's approval, according to the prosecutors. -- In August 2013, Retrophin's auditor questioned the settlements, determining that they weren't the company's responsibility. Yet Shkreli continued the settlements, which he disguised from the auditor in the form of sham "consulting" agreements. 2015 -- In August 2015, Retrophin sued Shkreli for $65 million, saying he used the company's assets to pay off hedge fund investors. http://money.cnn.com/2015/12/18/news/companies/martin-shkreli/index.html
You still don't seem to understand the case. Shkreli is not accused here for not repaying one investor the initial investment plus some. The accusations are investor deceit among many others as outlined before. Lies like this to defraud and lie to investors: She testified that in January 2011, shortly before he invested $300,000 of her own money in MSMB Capital, Shkreli during a dinner in Manhattan told her the hedge fund had between $40 million and $50 million under managment. In fact, prosecutors have said in an indictment, two months before that MSMB Capital had just $700 on hand, as a result of Shkreli's ongoing trading losses.
I bet in the end people will find out Shkreli lost money trading and then started his pyramid scheme by starting up one company after another to stall investors and/or repay existing investors with money from new investors.
Josiah T. Austin, managing member of El Coronado Holdings LLC, said he invested $4.8 million in Shkreli’s Elea Capital Management in 2006 and 2007 because he liked Shkreli. Austin told the jury he lost it all. Austin, 70, was allowed to testify as prosecutors attempt to show a pattern in Shkreli’s behavior of deceiving investors from early in his career. He said he met Shkreli in about 2005 and was impressed with his intelligence. At the time, Shkreli was managing investments at UBS AG in New York. "Martin was young, a little cocky, he knew biotech," Austin said. "I think Martin wanted to be successful, wanted to make a lot of money." He wanted to be like “Stevie Cohen,” Austin said, referring to the multibillionaire whose SAC Capital Advisors hedge fund generated large returns before it pleaded guilty and was shuttered to settle an insider-trading probe. Shkreli, 34, is fighting charges of operating two hedge funds -- which he ran after Elea Capital -- like a Ponzi scheme. Prosecutors claim he took clients’ money without permission and used it to start Retrophin Inc. Shkreli is also accused of looting $11 million of the drug company’s assets to pay off investors who’d lost money in the funds. He faces as long as 20 years in prison if convicted of the most serious charges. News Headlines Shkreli seemed rankled by news headlines about the trial during his visit to the overflow courtroom and complained that reports suggested he made no money while running the hedge fund MSMB Capital. The government’s first witness, Sarah Hassan, an investor in the fund, wasn’t a victim because she made $2.7 million in profits, he said. Hassan testified Thursday she got the impression from marketing materials Shkreli sent that her father was involved in the launch of Retrophin. Fred Hassan took the stand Friday and said that wasn’t true. The managing director of Warburg Pincus LLC and former chairman and chief executive officer of Schering Plough Corp. said he was never Shkreli’s mentor, business reference or adviser. “There was no personal contact to the best of my knowledge,” Hassan said. Blame Game While speaking to the reporters, Shkreli said he had nothing to do with Fred Hassan’s name appearing in the materials his daughter received. He blamed that on “folks in marketing and accounting.” When asked whether the government offered him a deal to resolve the case, Shkreli didn’t answer directly, saying only: “I wanted my day in court.” Shkreli ran Elea Capital from 2005 to 2006 until it collapsed after a series of failed trades, Austin said. In the months before Shkreli shut the fund down, he asked for at least $1 million, saying he needed to meet margin calls, Austin testified. “Markets go up, markets go down," Shkreli told his investors in an Aug. 16, 2007, email that was shown to jurors. "Sorry for all the inconvenience I cost you -- I know sorry doesn’t cut it.” Austin, who said El Coronado has $300 million in assets, told the jury that Shkreli continued to seek him out to invest in a new hedge fund he was starting -- MSMB Capital -- and later asked him to invest in Retrophin. Austin said he declined. “I still thought Martin was an intelligent, smart guy,” Austin said. “But I didn’t particularly want to do any more business with him." The trial is scheduled to resume Tuesday. As he was leaving court ahead of the four-day weekend, Shkreli was asked by a reporter how he thought the afternoon session went. “I have to be careful about who I talk to,” he replied. “I could get into trouble.” The case is U.S. v. Shkreli, 15-cr-0637, U.S. District Court, Eastern District of New York (Brooklyn).