Martin Shkreli Sentenced To 7 Years For Securities Fraud
NEW YORK (CBSNewYork/AP) — Former pharmaceutical executive and hedge fund manager Martin Shkreli was sentenced to 7 years in prison for securities fraud.
Shkreli was convicted of defrauding investors in two hedge funds.
Shkreli, his cocky persona nowhere to be found, cried as he told U.S. District Judge Kiyo Matsumoto he made many mistakes and apologized to investors.
"I want the people who came here today to support me to understand one thing, the only person to blame for me being here today is me," he said. "I took down Martin Shkreli."
He said that he hopes to make amends and learn from his mistakes and apologized to his investors.
"I am terribly sorry I lost your trust," he said. "You deserve far better."
The defense asked U.S. District Judge Kiyo Matsumoto for a sentence of 18 months or less because investors got their money back in drug company stock.
Prosecutors said Shkreli deserves at least 15 years behind bars for pilfering funds to start the company.
Shkreli, 34, became notorious for raising the price of a life-saving drug by 5,000 percent and trolling critics on the internet with his snarky "Pharma Bro" persona.
To make its case for leniency, the defense asked the judge to consider several letters from Shkreli and his supporters, which included professionals he worked with who vouched for his credentials as a self-made contributor to pharmaceutical advances.
Other testimonials were as quirky as the defendant himself. One woman described how she became an avid follower of Shkreli's social media commentary about science, the pharmaceutical industry, but mostly, about himself. She suggested that those who were annoyed by it were missing the point.
"I really appreciate the social media output, which I see on par with some form of performance art," she wrote.
Another supporter said Shkreli's soft side was demonstrated when he adopted a cat from a shelter — named Trashy — that became a fixture on his livestreams. Another letter was from a man who said he met Shkreli while driving a cab and expressed his appreciation at how he ended up giving him an internship at one of his drug companies.
And then there was this from Shkreli: "I was wrong. I was a fool. I should have known better."
In court filings, prosecutors argued that Shkreli's remorse about misleading his investors was not to be believed.
"At its core, this case is about Shkreli's deception of people who trusted him," they wrote. "Indeed, he compounded the lies with a pattern of corrupt behavior designed to cover up those lies. He lied to get investors' money, he lied to keep them invested in his funds and he lied once those investors wanted their money back."
Even after his arrest in 2015, Shkreli went against his lawyers' advice to lay low by taunting authorities in Facebook posts. And after his conviction last year, the judge revoked his bail and jailed him when he said he would pay a $5,000 bounty to anyone who could get a lock of Hillary Clinton's hair while the Democrat was on a book tour.
The defense suffered a setback earlier this week when the judge ruled Shkreli would have to forfeit more than $7.3 million in a brokerage account and personal assets including his one-of-a-kind Wu-Tang Clan album that he boasted he bought for $2 million. The judge said the property would not be seized until Shkreli had a chance to appeal.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)