In House - The FindLaw Corporate Counsel Blog

Securities Fraud Lands Shkreli in Prison for 7 Years

Everyone's least favorite former pharmaceutical executive, Martin Shkreli was just sentenced to seven years in prison stemming from his conviction for misleading investors in two hedge funds. Apparently, the "junior varsity" prosecution, as the disgraced executive called it, was good enough.

Interestingly, Shkreli will receive six months credit for time served as his bond was revoked after his conviction because he put a bounty on a lock of Hilary Clinton's hair using social media. The bounty drew quite a bit of attention, and the Secret Service, which provides Clinton's security, and the prosecutors and court, did not think the alleged joke was funny at all. In addition to the seven years, Shkreli faced severe financial penalties, and one property deprivation that would make even the most stoic 14 year old breakdown in tears.

A Wu-Tang Album Isn't Forever

On top of the seven years, the court stripped Shkreli of over $7 million, his shares in his pharma company, and perhaps the pharma bro's most prized possession: a rare, one of a kind, Wu-Tang Clan album, purchased for $2 million at auction. Furthermore, he will have three years of probation post release.

Shkreli's attorneys sought leniency from the court, asking for a 12 month sentence. Prosecutors sought a 15 year sentence. And just looking at the numbers, it looks like the judge landed right in the middle.

Making Amends

In his statement to the court, Shkreli appears to potentially be trying to turn over a new leaf, though raising the price of a lifesaving drug by 5,000% is likely going to keep him branded as a super villain for the rest of his life. He took ownership for his crimes and explained that he acted alone, which his former lawyer who's still awaiting sentencing would probably want his judge to hear.

For the rest of us, we can take solace in the fact that the limericks about Shkreli will continue as long as he continues to appeal. The following comes courtesy of fellow FindLaw colleague and creative extraordinaire, Winston Conrad:

There once was a man named Shkreli;
Self-modeled on Machiavelli;
But he's off to serve time;
No more Wu-Tang and wine;
His financial transactions were smelly.

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