Martin Shkreli gets 7 years in prison: 8 things to know

Ending a yearslong saga, a U.S. District Court judge sentenced Martin Shkreli, the former CEO of Turing Pharmaceuticals who gained notoriety for inflating the price of a life-saving anti-infection drug, to seven years in prison March 9 for defrauding investors, reports Bloomberg.

Here are eight things to know.

1. The latest trial determined his sentence for one count of conspiracy to commit securities fraud and two counts of securities fraud. Mr. Shkreli was convicted of those three counts in August 2017.

2. Prosecutors argued Mr. Shkreli lied to multiple investors, causing them to pour millions of dollars into two hedge funds he ran. Prosecutors also said Mr. Shkreli falsely sent out financial statements to investors claiming positive returns, even though he lost most of their money.

3. Although prosecutors sought a 15-year prison sentence for his crimes, the judge sentenced Mr. Shkreli to seven years in prison.

4. The judge also ordered Mr. Shkreli to give up $7.4 million in profits he made from his crimes and fined him $75,000.

5. In his sentencing hearing, Mr. Shkreli told his investors as he choked back tears, "I am terribly sorry I lost your trust. You deserved far better," according to Bloomberg.

6. After Mr. Shkreli was convicted in August, he was released on $5 million bail. In September 2017, U.S. District Court Judge Kiyo Matsumoto revoked his bail after he posted an inflammatory remark on Facebook offering $5,000 to anyone who would bring him a strand of Hillary Clinton's hair.

7. His fraud conviction had nothing to do with the controversy that made him famous — jacking up the price of Daraprim, a treatment for HIV patients, by 5,000 percent in 2015. The price hike sparked public outrage, landing him on Capitol Hill to testify about his decision at a House Oversight Committee hearing. He allegedly sneered through that proceeding. He did not receive a legal punishment for increasing the price of the drug, according to CNN Money.

8. Less than a year after he increased the price of Daraprim, Mr. Shkreli was accused of lying to investors by the U.S. government. 

More articles on legal & regulatory issues:
Woman arrested after posing as employee at 2 Tennessee hospitals: 4 things to know
5 latest healthcare industry lawsuits, settlements
Ex-DOJ attorney sentenced to prison for stealing whistle-blower lawsuits

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months