As trial nears, Shkreli seeks steep cut in $5 million bail
Just days before the start of his fraud trial, Martin Shkreli is running short on cash.
A lawyer for the brash former pharmaceutical executive asked a federal judge to cut his bail from $5 million to $2 million, freeing up $3 million for tax and legal expenses. There’s no risk that Shkreli will flee, the attorney added.
“Today, the majority of Mr. Shkreli’s assets are illiquid,” defense lawyer Benjamin Brafman said in a June 15 letter to U.S. District Judge Kiyo Matsumoto in Brooklyn. “The current bail is far in excess of what is required.”
Shkreli became notorious after his Turing Pharmaceuticals bought the lifesaving HIV and AIDS drug Daraprim and raised its price to $750 from $13.50. But his criminal trial, which is scheduled for June 26, will have nothing to do with that. He’s accused of deceiving investors about the performance of two now-defunct hedge funds and taking assets from Retrophin, which he co-founded, to pay off his funds’ debts. Shkreli denies wrongdoing.
Federal prosecutors oppose Shkreli’s bid to cut his bail, Brafman said.
Shkreli owes money to his civil lawyers for work related to this case and others, Brafman said. He also has debts to forensic accountants who are addressing state and federal tax claims against him.
“Although Mr. Shkreli is still worth a lot of money due to his ownership interest in Turing, that interest cannot be sold, nor can it be pledged,” Brafman wrote.