Shkreli Ordered by U.S. Judge to Forfeit Almost $7.4 Million

• March 05 2018
• Patricia Hurtado

Martin Shkreli was ordered by a federal judge to forfeit almost $7.4 million, in a win for prosecutors who say the hedge-fund manager turned pharmaceutical executive cheated his investors.

Martin Shkreli was ordered by a federal judge to forfeit almost $7.4 million, in a win for prosecutors who say the hedge-fund manager turned pharmaceutical executive cheated his investors.

Shkreli, who is in jail, will be sentenced March 9 on his conviction for defrauding investors in hedge funds he ran by lying to them about his track record and performance as well as a fraud scheme involving Retrophin Inc., a company he founded.

Shkreli had argued that he shouldn’t have to forfeit anything -- or very little -- because he didn’t profit from the crimes. Money from his investors went into the stock market, and he didn’t get anything from his plan to control Retrophin shares, his lawyers have said. Investors ultimately got their money back, and more, through settlements and consulting agreements Shkreli arranged, he said.

Shkreli’s assets include a Picasso, $5 million in his personal trading account, a one-of-a-kind special edition album by the Wu-Tang Clan and his shares in Vyera Pharmaceuticals -- formerly called Turing Pharmaceuticals, according to prosecutors.

Prosecutors last month argued that Shkreli cost his investors more than $20 million by inducing them to put millions of dollars into his two hedge funds which operated essentially like Ponzi schemes. They said he spent investor funds on personal expenses "to maintain the image of a successful hedge fund manager."

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