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Martin Shkreli indictment [pdf]

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Re: Martin Shkreli indictment [pdf]

#21

Post by steveplace »

hapless wrote: post #14
fukusa wrote: post #9

Earlier quoted context omitted.

It could have been laying around. "We'll use this when we need to"

The indictment makes it clear he's been under SEC investigation for six years. Meanwhile, his former firm is suing him for stealing shareholder's money. Both matters pre-date Skreli's national notoriety, because it was his new, post-Retrophin firm that made him "famous" for price gouging.

Can you tell me where it says that? I've been looking for details as to when the investigation started but in the document it just lists all the bad things that have happened in the past.

Re: Martin Shkreli indictment [pdf]

#22

Post by rdancer »

chriscappuccio wrote: post #7

The indictment makes it obvious that this started long before Daraprim was in the news. I'd say this isn't politically motivated, at least not for that reason alone.

The alleged crimes would have been investigated under any circumstances. The question is, would the charges be filed if it weren't politically expedient?

That this question even has any legitimacy is troubling in and of itself.

Re: Martin Shkreli indictment [pdf]

#23

Post by the_hangman »

the_hangman wrote: post #13

> On or about December 2, 2010, Investor 1 [...] asked SHKRELI in an email about, inter alia, the fund's assets under management and the names of its independent auditor and fund administrator. SHKRELI told Investor 1 that MSMB Capital had $35 million in assets under management and that the fund's independent auditor and administrator were Rothstein, Kass & Company, P.C. and NAV Consulting Inc., respectively. At the…

It just keeps getting better (or worse, depending on if you invested with him)...

In addition to failing to settle a huge short position, he managed to turn $1.12 million into $58,500 in 28 days.

> Contrary to SHKRELI' s representations to Merrill Lynch, MSMB Capital had failed to locate OREX shares to borrow in order to settle MSMB Capital's short sales. As a result, MSMB Capital failed to settle a short position of over 11 million shares of OREX, which Merrill Lynch ultimately closed at a loss of over $7 million. In addition to the losses in the Merrill Lynch account, MSMB Capital suffered over $1 million in other trading losses in approximately February 2011. Based on these trading losses, the value of assets in MSMB Capital's bank and brokerage accounts, not including the OREX losses at Merrill Lynch, declined from more than $1.12 million on or about January 31, 2011 to $58,500 at the end of February 2011.

Re: Martin Shkreli indictment [pdf]

#25

Post by kbenson »

jackhack wrote: post #16
kstrauser wrote: post #4

I'm very conflicted: 1) "Innocent until proven guilty" and "wow, that timing sure is convenient". 2) LOL. grabs a bucket of popcorn

I am the only one hoping the judge offers bail, then raises it 5000% over the norm?

No, you have it wrong. It's not about the price increase percentage, it's about setting the price to what the market is willing to bear.

In this case the Market is Martin Shkreli, and what he's willing to bear is likely everything he owns.

Re: Martin Shkreli indictment [pdf]

#26

Post by pc86 »

jackhack wrote: post #16
kstrauser wrote: post #4

I'm very conflicted: 1) "Innocent until proven guilty" and "wow, that timing sure is convenient". 2) LOL. grabs a bucket of popcorn

I am the only one hoping the judge offers bail, then raises it 5000% over the norm?

No sense giving the defense any more reasons for appeal. Whether the guy is a scumbag or not, whether he has a lot of money or not, the criminal justice system should not be imposing undue burden or punishment based on public opinion regarding a matter that isn't even relevant to the case.

I won't lose any sleep when this guy goes to prison for a long time, but no sense doing nonsense that will only mildly inconvenience him and give potential grounds for appeal.

Re: Martin Shkreli indictment [pdf]

#27

Post by jqm »

Cynical me has to wonder if this has less to do with stealing and more to do with getting the plebs riled up to the point they start wanting to shine a light on the whole ecosystem. Powerful people in government and industry are... well, not the kind of people who take lightly to having their loot threatened.

Note to self: if you ever take up stealing as a primary business, do it quietly and don't attract attention to your fellows.

Re: Martin Shkreli indictment [pdf]

#28

Post by ChuckMcM »

amateur_soclgst wrote: post #18
the_hangman wrote: post #13

> On or about December 2, 2010, Investor 1 [...] asked SHKRELI in an email about, inter alia, the fund's assets under management and the names of its independent auditor and fund administrator. SHKRELI told Investor 1 that MSMB Capital had $35 million in assets under management and that the fund's independent auditor and administrator were Rothstein, Kass & Company, P.C. and NAV Consulting Inc., respectively. At the…

I found it funnier how they tried to short sell $1M of stock and somehow got $7M in the hole. Must have been some leverage on that deal :v

Actually that is very "easy" to do, first you short sell some stock (naked short) for $1M, then the stocks value goes up by $8M. You are asked to cover your short and even after your $1M you are still left holding $7M in liabilities.

Re: Martin Shkreli indictment [pdf]

#29

Post by danso »

Seriously disappointing news.

Shkreli seemed like such an obvious troll in how he defended his price gouging by saying that a CEO's role is to maximize profit for the benefit of shareholders...and yet did so in such an unnecessarily obnoxious way that if he truly were the uber-capitalist, he would know that bragging and drawing attention to what an asshole you are does not achieve the true capitalist goal. I would've bet money that in a year, he would reveal that his act was just a trolling piece of noble performance art to raise awareness of how evil corporations could be.

I'm holding out hope that getting arrested and indicted is still all part of his greater plan, though if so, it's a bit more elaborate than it needs to be, IMHO :)

Re: Martin Shkreli indictment [pdf]

#30

Post by prdonahue »

amateur_soclgst wrote: post #18
the_hangman wrote: post #13

> On or about December 2, 2010, Investor 1 [...] asked SHKRELI in an email about, inter alia, the fund's assets under management and the names of its independent auditor and fund administrator. SHKRELI told Investor 1 that MSMB Capital had $35 million in assets under management and that the fund's independent auditor and administrator were Rothstein, Kass & Company, P.C. and NAV Consulting Inc., respectively. At the…

I found it funnier how they tried to short sell $1M of stock and somehow got $7M in the hole. Must have been some leverage on that deal :v

Umm, you know how short sales work right? You're borrowing shares to sell them at current prices and then have to return the shares later. If the price rises, you are out the difference between what you sold at and what you repurchase at for when the call to cover comes in.
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