NEW YORK -- Martin Shkreli, a former pharmaceutical executive notorious for sharply increasing drug prices, mounting sneering defenses of his actions and even issuing a bounty for one of Hillary Clinton's hairs, was sentenced Friday to seven years in prison after being convicted of fraud last year.
"I was never motivated by money," said Shkreli, sitting at the defense table as he read from notes before the sentence was handed down. He cried as he gave his statement.
Prosecutors had sought a sentence of at least 15 years; the defense had pushed for 12 to 18 months.
Shkreli, 34, is best known for raising the price of an anti-parasitic drug, Daraprim, by 5,000 percent to $750 per pill in a move that was widely condemned by the public and politicians. His fraud convictions were unrelated to that episode, stemming instead from his involvement with Retrophin, a pharmaceutical company he founded in 2011, and two hedge funds he ran.
In August, a jury convicted Shkreli, nicknamed "Pharma Bro," on three of eight counts, concluding that he had lied to investors about, among other things, how the hedge funds were managed, what they invested in and how much money they had. The jury found that he had also secretly controlled a huge number of Retrophin shares.
As she imposed the sentence, U.S. District Judge Kiyo A. Matsumoto cited Shkreli's "egregious multitude of lies." She said he seemed "genuinely remorseful," but he "repeatedly minimized" his conduct, including in statements and emails after his conviction.
"There are times when I want to hug him," Shkreli's lawyer, Benjamin Brafman, told the judge Friday, arguing for a short sentence. "There are times I want to punch him in the face because he's made my job more difficult by some of the things he's said."
Shortly after Shkreli's conviction, his lawyers suggested that he would not be sentenced to prison. They noted that he had ultimately paid back his investors, meaning there was no financial loss.
Matsumoto rejected that argument, citing legal precedents establishing that fraud losses cover property whether or not it is returned. She had ruled Monday that Shkreli would also have to forfeit $7.36 million to the government to cover his fraud.
Matsumoto also authorized the government to seize Shkreli's assets, including a one-of-a-kind Wu-Tang Clan album and a Picasso, if he was otherwise unable to come up with the required restitution.
"There is no conspiracy to take down Martin Shkreli. I took down Martin Shkreli," a sobbing Shkreli said, his voice cracking and his address interrupted by the judge handing him tissues.
"This is my fault. I am not a victim here."
Prosecutor Jacqueline Kasulis slammed Shkreli as an unrepentant fraudster who cares only about himself and his supersized ego.
"What motivates Martin Shkreli is his own image," Kasulis said. "He can't just be an average person who fails, like the rest of us. ... He needs to be mythical. He needs to be larger than life."
The sole copy of the Wu-Tang Clan album Once Upon a Time in Shaolin, packaged in a custom silver-and-nickel case and accompanied by a 174-page leather-bound book, has been the subject of worldwide intrigue. It may be the most famous album ever kept in the possession of just one person.
The original price, set when Shkreli bought the album at auction three years ago, has never been publicly confirmed, though it has been reported as $2 million. If seized, the album would most likely be studied by government-appointed appraisers and offered at a public auction, said Charles A. Intriago, a former federal prosecutor who is an expert in financial crimes.
For an item whose worth depends on its uniqueness and safekeeping, Once Upon a Time in Shaolin has a history that would probably worry any potential collector, said Jeff Gold, a top dealer in rock memorabilia through his store Recordmecca.
Have any copies been made? How has it been stored? How many people have heard it? All those questions could weigh on a sale.
Information for this article was contributed Ben Sisario of The New York Times; and by Andrew Keshner of the New York Daily News.
Business on 03/10/2018