The ‘Pharma Bro’ gets 7 years in prison in his fraud case.
He says he made ‘gross, stupid and negligent mistakes’
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.
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 a drug, Daraprim, by 5,000 percent 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 3 of 8 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.
As she imposed the sentence, U.S. District Court Judge Kiyo Matsumoto cited Shkreli’s “egregious multitude of lies.”
“I was never motivated by money,” said Shkreli, wearing dark prison scrubs and sitting at the defense table as he read from notes before the sentence was handed down. He cried as he gave his statement, dabbing at his eyes with a tissue. “I wanted to grow my stature and my reputation. I am here because of my gross, stupid and negligent mistakes I made.”
Matsumoto also authorized the government to seize Shkreli’s assets, including a one-of-akind Wu-Tang Clan album and a Picasso, if he was otherwise unable to come up with the required restitution.
How much is the Wu-Tang album worth? Shkreli reportedly bought the sole copy of “Once Upon a Time in Shaolin” for $2 million. Now, one memorabilia dealer said, “the bloom is off the rose.”
Shkreli’s supporters argued, in letters submitted to the judge before sentencing, that he was a bright, nerdy child who became consumed with internet fame.
During and after his trial, Shkreli’s behavior online exacerbated his plight. As the proceedings wrapped up, for instance, he wrote on Facebook that if he were to be acquitted, he would be able to have sex with a female journalist he often posted about online. It was one of several posts that prosecutors cited in a pre-sentencing submission in which they argued that any remorse Shkreli claimed to feel was only for show.
“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.”