

US ex-pharma boss Shkreli guilty of fraud

Eccentric former pharmaceutical CEO Martin Shkreli has been convicted of deceiving investors in a pair of failed hedge funds.

Shkreli, notorious for a price-gouging scandal and for his snide "Pharma Bro" persona on social media, was found guilty on three of eight counts.

He had been charged with securities fraud, conspiracy to commit securities fraud and conspiracy to commit wire fraud.

Shkreli, upbeat and defiant outside court afterward, called his prosecution "a witch hunt of epic proportions" but conceded that maybe the government had found "one or two broomsticks."

Asked about his client's social-media antics, lawyer Ben Brafman said it was something they would be working on.

"There is an image issue that Martin and I are going to be discussing in the next few days," he said, adding that while Shkreli was a brilliant mind, sometimes his "people skills" need work.

As he spoke, Shkreli smiled and cocked his head quizzically in mock confusion.

Related Articles

Brafman predicted that Shkreli would someday go on to develop cures to terrible diseases that afflict children.

Prosecutors had accused Shkreli of repeatedly misleading investors about what he was doing with their money.

Mostly, he was blowing it with horrible stock picks, forcing him to cook up a scheme to recover millions in losses, they said.

Shkreli, 34, told "lies upon lies," including claiming he had $US40 million in one of his funds at a time when it only had about $US300 in the bank, Assistant US Attorney Alixandra Smith said in closing arguments.

The trial "has exposed Martin Shkreli for who he really is - a con man who stole millions," added another prosecutor, Jacquelyn Kasulis.

But the case was tricky for the government because investors who testified said Shkreli's scheme actually succeeded in making them richer, in some cases doubling or even tripling their money on his company's stock when it went public.

"Who lost anything? Nobody," Brafman said in his closing argument. Some investors had to admit on the witness stand that partnering with Shkreli was "the greatest investment I've ever made," he added.

Martin Shkreli. (AAP)
Martin Shkreli. (AAP) ()

© AAP 2019


Send your photos, videos and stories to 9News

Property News: How to know when a job requires a handyman or a trades person -