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'Pharma Bro' Martin Shkreli sentenced to 7 years in prison for securities fraud

Martin Shkreli

The self-promoting "Pharma Bro" vilified for jacking up the price of a lifesaving drug has been sentenced to prison for securities fraud.

Pharmaceutical executive Martin Shkreli (SHKREL'-ee) was sentenced Friday to seven years in prison by U.S. District Judge Kiyo Matsumoto (KEE'-yoh maht-soo-MOH'-toh) after he was convicted last year of lying to investors in two failed hedge funds.

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Shkreli cried as he told the judge that he made many mistakes and he apologized to investors.

His attorney argued that he deserved 18 months or less and shouldn't be punished for being outspoken. The judge says she did not take his outside actions into account.

Shkreli had been free on bail until a judge jailed him for offering a $5,000 bounty to anyone who could get a lock of Hillary Clinton's hair last year.

He remains in custody.

Martin Shkreli must forfeit $7.4 million, including infamous Wu Tang Clan album

Martin Shkreli was ordered by a federal judge Monday to forfeit nearly $7.4 million as a result of his fraud convictions last year.

Brooklyn Federal Judge Kiyo Matsumoto said he must give up his one-of-a-kind Wu Tang Clan album, "Once Upon a Time in Shaolin," for which Shkreli reportedly paid $2 million.

In addition to the album, Matsumoto also ordered him to give up a Picasso painting, an album called "The Carter V" by Lil Wayne, and $5 million he posted for bail.

Shkreli was convicted of fraud for deceiving investors and misusing their money while he was a portfolio manager at a hedge fund. He faces sentencing at Brooklyn Federal Court on Friday, and could potentially get up to 20 years in prison.

Shkreli was convicted on August 4, 2017, and was out on bail until September 13, when the judge threw him in jail for his online offer of $5,000 to anyone who would bring him a strand of Hillary Clinton's hair.

Shkreli has been at the Brooklyn Metropolitan Detention Center ever since.

His lawyer, Ben Brafman, did not respond to a request for comment.

Shkreli, the former Chief Executive Officer of Retrophin, is most famous for his role as founder and CEO of Turing Pharmaceuticals. That's where he jacked up the price of Daraprim, a life-saving drug for HIV patients, from $13.50 a pill to $750, sparking an angry public backlash. He ended up testifying on Capitol Hill about drug prices, but he sneered his way through the appearance and pleaded the Fifth Amendment.

The Daraprim debacle has nothing to do with his fraud convictions. Shkreli still has a net worth of $27.1 million, after subtracting for the forfeiture, and the taxes and legal fees that he owes, according to a court document.


About the Authors
Ken Haddad headshot

Ken Haddad has proudly been with WDIV/ClickOnDetroit since 2013. He also authors the Morning Report Newsletter and various other newsletters, and helps lead the WDIV Insider team. He's a big sports fan and is constantly sipping Lions Kool-Aid.

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