Economy

USA ex-drug company CEO sentenced to 7 years for defrauding investors

USA ex-drug company CEO sentenced to 7 years for defrauding investors

In the two years since Federal Bureau of Investigation agents ushered him from his Manhattan apartment, Shkreli has gone from a rising star in the hedge fund world to Wall Street bad boy.

Shkreli, who is 34, choked back tears as he apologized for his actions, admitting that his conduct was "disgraceful" and "shameful". Its essence is instead about "repeated breaches of trust" and "repeated lies to his investors".

In his remarks before the sentencing, Shkreli cried and pleaded for mercy.

"I accept and believe he is genuinely remorseful", Matsumoto said. "I will do it [one day], the right way".

During the course of the trial, Shkreli was removed from Twitter for harassing a journalist for Teen Vogue magazine.

Turing obtained the manufacturing licence for the anti-parasitic drug Daraprim, raising its price from $13.50 (£10) to $750 (£540) per pill. "It is more than clear that Mr. Shkreli is a gifted individual with a passion for science", she said.

The defence submitted that Martin Shkreli is merely a "misunderstood eccentric" who used unconventional means to build wealth for his investors, while prosecutors characterised him as a "master manipulator" and conman, calling for a sentence of 15 years.

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A month after his conviction, Matsumoto revoked Shkreli's $5 million bail and threw him behind bars after he offered a $5,000 bounty on Facebook for a strand of Hillary Clinton's hair.

Shkreli famously purchased the sole copy of Wu-Tang Clan's "Once Upon A Time In Shaolin" album for $2 million back in 2015 and recently listed the item for sale on eBay.

Judge cites "multitude of lies" and sentences... Shkreli was "motivated by the potential to make tremendous profits", they said in a memo asking for a 15-year jail term. He walked away with 84 months and credit for time served which is significantly more than the 12 to 18 months Shkreli's defense team lobbied for an but less than half of what prosecutors were aiming for.

"There's no conspiracy to take down Martin Shkreli", the former Turing Pharmaceuticals CEO said in court, while wearing a jail jumpsuit. Shkreli reportedly wept, begged for mercy, and referred to himself in the third person while trying to appeal to Judge Kiyo Matsumoto sympathies.

Shkreli gained notoriety for his decision to raise the price of a lifesaving drug 5000 per cent. Outside the court after the sentence, he added: "Could it have been worse?"

But Shkreli's sentence isn't related to that price hike; it stemmed from events earlier in his career while he managed a hedge fund.