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'Pharma Bro' Martin Shkreli sentenced to seven years

http://www.bbc.co.uk/news/world-us-canada-43352073

Martin Shkreli, the former drug firm executive found guilty of defrauding investors, has been sentenced to seven years in prison.
The 34-year-old wept at a hearing as a federal court judge in Brooklyn, New York, handed down the prison term.

Shkreli was convicted last year of sending fake account statements to investors while concealing huge losses from two hedge funds he ran.

He first became notorious in 2015 for hiking the price of a lifesaving drug.

His lawyers had asked the judge to impose a sentence of 12 to 18 months, while prosecutors were seeking at least 15 years

In December 2015, he was charged with securities fraud charges and looting millions of dollars from two hedge funds he operated, MSMB Capital and MSMB Healthcare.

He was convicted of those charges, as well as scheming to prop up the stock price of Retrophin, the drug company he founded in 2011.

After a jury found him guilty in August last year, Shkreli was allowed to remain free pending sentencing.

But a month later he offered social media followers $5,000 if they could bring him the hair from former US presidential candidate Hillary Clinton, who repeatedly criticised him during her campaign.

A judge revoked bail and Shkreli was jailed.

Prosecutors moved to seize $7.4m of his assets, including a single copy of an album by American hip hop group the Wu-Tang Clan that the disgraced executive is said to have paid $2m for at auction in 2015.

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Thoughts? Well deserved, too lenient, or too harsh?

Reply 1

the bear

he sounds like a deserving candidate for the slammer.

Reply 2

HighOnGoofballs

Original post by the bear

he sounds like a deserving candidate for the slammer.

mmhmm...

The guys disregarding attitude in court certainly wouldn't have helped him with the judge.

Can't help feel sorry for him as he'll likely spending his time in a MAX security prison for some reason, which is very rare for a white-collar crime. Feels like the sentence was to punish Shkreli for who he was rather than what he did, but certainly, he got what was coming to him I suppose.

Reply 3

999tigger

If anyone remembers this guy who ran some hedge funds and increase some of his drugs prices by 5000%? He then mocked Congress when there was an investigation in 2016 calling them all imbeciles.

http://www.bbc.co.uk/news/business-35496380

Who'd have thought two years later he would be sentenced to 7 years in jail and crying for mercy as he was convicted of defrauding investors and stealing millions.

Martin Shkreli, the former drug firm executive found guilty of defrauding investors, has been sentenced to seven years in prison.
The 34-year-old wept at a hearing as a federal court judge in Brooklyn, New York, handed down the prison term.
Shkreli was convicted last year of sending fake account statements to investors while concealing huge losses from two hedge funds he ran.
He first became notorious in 2015 for hiking the price of a lifesaving drug.
His lawyers had asked the judge to impose a sentence of 12 to 18 months, while prosecutors were seeking at least 15 years.

http://www.bbc.co.uk/news/world-us-canada-43352073

Reply 4

Vertigo_descent

Imbeciles is an apt term for them.

Reply 5

Napp

The man is an utter turd.
The irony in this is with him having jacked up the price of aids medicine through the roof, after his spell in jail, he may well be in need of it himself.

Reply 6

The PoliticalGuy

It was well overdue.

This is the exact problem of unregulated capitalist societies where private companies have far too much power and break the law many times before actually being charged.

Reply 7

HighOnGoofballs

Original post by The PoliticalGuy

It was well overdue.

This is the exact problem of unregulated capitalist societies where private companies have far too much power and break the law many times before actually being charged.

Except when he jacked up the prices it was a good thing for everyone. Nobody wants to look at why he did it, they just want to be outraged. I'm not an apologist, but there is a huge misconception about the 5000% price rise.

1. It was a victimless crime.
2. Only 2000 poeple needed the drug in the united states
3. Those of whom had insurance, the drug was paid for
4. Those who didn't have insurance (about 50%), Shkreli gave the drug for free
5. The profit gained for the price hike went into research in order to produce a better, and cheaper drug.

Sure hes a smartass and a d*ck, but people hate him irrationally because they think he was trying to f*ck over AIDS victims. That's not true.

(edited 6 years ago)

Reply 8

The PoliticalGuy

1. It was a victimless crime.
2. Only 2000 poeple needed the drug in the united states
3. Those of whom had insurance, the drug was paid for
4. Those who didn't have insurance (about 50%), Shkreli gave the drug for free
5. The profit gained for the price hike went into research in order to produce a better, and cheaper drug.

Link it?

Sure hes a smartass and a d*ck, but people hate him irrationally because they think he was trying to f*ck over AIDS victims. That's not true.

How is that not true, why increase the price by 50000% to later make no gained profits?

Reply 9

HighOnGoofballs

Original post by The PoliticalGuy

Link it?

How is that not true, why increase the price by 50000% to later make no gained profits?

I'll find the links and link them in an edit later.

Regarding your second point, it wasn't 50000%, it was 5000%. Moreover, of course, there were gained profits...but, like I said, they went into research to produce a new drug which was going to be better and cheaper. Again, I'll find all the links and edit them in the comment.

______________________________

Sources:

http://www.independent.co.uk/news/people/martin-shkreli-pharmaceuticals-ceo-who-raised-hiv-drug-price-by-5000-also-hiked-cost-of-pill-taken-10513645.html

Mr Shkreli told ABC News that his company would reduce the cost of Daraprim to make it more accessible on Monday, although he did not say what the new price of the drug would be.

“We've agreed to lower the price of Daraprim to a point that is more affordable and is able to allow the company to make a profit, but a very small profit,” he said.

Turing had said it would use profits to improve the drug's formulation and develop new, better drugs for the toxoplasmosis. Daraprim treats patients with compromised immune systems caused by HIV and other conditions.

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https://qz.com/611347/martin-shkreli-has-fallen-from-grace-but-his-former-firm-is-still-charging-sky-high-prices/

...she went over the reasons why the company has decided to keep the price that Skreli had set, noting that the “actual net price” ranges from $0.01 to $750 per pill, with fewer than 25% of pills sold at the highest price.

...Retzlaff, responding to a question from committee chair Jason Chaffetz, a Utah Republican, said that Daraprim—which is used by only about 3,000 patients (it is lower now btw) - brought $98 million in revenue to Turing last year. But after distribution costs, overhead, salaries, reinvestment in research and development, and other expenses, the company generated a first-year loss.

The source also has a bit of a counter argument later on, so you can check that out as well.

_______________________

http://money.cnn.com/2016/08/25/news/economy/daraprim-aids-drug-high-price/index.html

Turing argues that "approximately two-thirds of Daraprim sales are to federal and state health programs that pay Turing just 1 cent per pill."

________________

https://www.businessinsider.com.au/what-is-price-gouging-2015-11

^ This is a good one.

(edited 6 years ago)

Reply 10