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U.S. NEWS Friday 14 July 2017

Investors: ‘Pharma Bro’ Shkreli was shady - and profitable

By TOM HAYS day with the government Blanton, who notified the
Associated Press still in the middle of its case. Securities and Exchange
NEW YORK (AP) — The jury The lack of clear-cut finan- Commission. Shkreli, 34,
at the securities fraud trial cial harm separates the was arrested in 2015 after
of “Pharma Bro” Martin alleged fraud from others he already had gained no-
Shkreli has heard investors like Bernard Madoff’s noto- toriety by using his Turing
accuse the quirky former rious Ponzi scheme, which Pharmaceuticals company
biotech CEO of repeatedly wiped out the nest eggs of to raise the price of a life-
giving them the runaround ordinary investors. Prosecu- saving medication by 5,000
when they tried to pull their tors have argued it doesn’t percent and for his nonstop
money out of his failing matter because Shkreli still posturing and trolling on so-
health care hedge fund. broke the law by blowing cial media, a compulsion
But the government wit- investors’ funds with bad that spawned the “Pharma
nesses have made a con- stock picks and then ly- Bro” nickname. Federal au-
cession that the defense ing to them for months — thorities focused instead on
hopes plays in its favor: In or even years — while he his MSMB Capital hedge
the end, they made a kill- cooked up a way to get fund, accusing him of ly-
ing. Whether jurors at the out of it. Former Turing Pharmaceuticals CEO Martin Shkreli, left, arrives ing to investors by boasting
trial that began June 26 in “I don’t think it mattered at federal court with his attorney Benjamin Brafman in New York. about too-good-to-be-true
federal court in Brooklyn to him — it was just what (AP Photo/Seth Wenig) returns at a time when he
will see Shkreli’s clients as he thought he could get had lost more than $7 mil-
victims of a crime is central away with,” said Richard stalled for three years when Over time, “I was wor- lion on a 2011 trade and let
to a case that’s featured Kocher, a New Jersey con- he tried to redeem his $1.3 ried Martin might be lying the fund dwindle to about
odd subplots, including a struction company owner million investment. to me and not credible,” $2 million in assets. q
self-serving rant by the de- who invested $200,000 in
fendant to reporters and with Shkreli in 2012. “It was
email evidence by a men- insulting.”
tor about wanting to touch Darren Blanton, a Dallas-
his “soft skin.” based investment firm
Testimony resumed Thurs- founder, testified Shkreli

Conviction of ex-NY Assembly

speaker tossed; retrial sought

By LARRY NEUMEISTER been properly instructed
DAVID KLEPPER on what constitutes an “of-
Associated Press ficial act.” “We recognize
NEW YORK (AP) — The cor- that many would view the
ruption conviction of former facts adduced at Silver’s
Assembly Speaker Sheldon trial with distaste,” the 2nd
Silver was overturned Thurs- Circuit said.
day by a federal appeals “The question presented
court that found sufficient to us, however, is not how
evidence but flawed jury a jury would likely view the
instructions in light of a re- evidence presented by the
cent Supreme Court ruling government.
narrowing the definition of Rather, it is whether it is
what it takes to convict a clear, beyond a reason-
public official. Prosecutors able doubt, that a rational
vowed to retry him. jury, properly instructed,
A three-judge panel of the would have found Silver
2nd U.S. Circuit Court of guilty.” Still, the court gave
Appeals in Manhattan said prosecutors encourage-
it could not conclude with ment that a retrial has mer-
certainty that a rational it, and acting U.S. Attorney
jury would have convict- Joon H. Kim said the gov-
ed the Democrat if it had ernment will seek one.q