A federal jury found former Turing Pharmaceuticals CEO Martin Shkreli guilty of securities fraud. Shkreli achieved notoriety for raising the per-dose price of an AIDS drug from $13 to $750.
Federal prosecutors indicted Shkreli in an unrelated case. According to federal investigators, Shkreli lied to investors about two failed hedge funds he operated. Shkreli faced eight charges related to the case. They included securities fraud, conspiracy to commit securities fraud and conspiracy to commit wire fraud.
Although Shkreli gained notoriety as “Pharma Bro” the case against him revolved around two hedge funds. Prosecutors say that Shkreli lost large sums of investor money in the stock market. Shkreli then lied to investors about the status of their investments, and the funds’ financial health.
According to prosecutors, Shkreli looted another company he owned in order to recover funds for his investors. Shkreli’s attorney argued that although he may be an unlikeable character, raising the price of a drug is not illegal. He also argued that ultimately no one was “victimized” by Shkreli’s plan to repay his investors.
Los Angeles securities fraud attorney
Securities cases are complex, as this story demonstrates. Although prosecutors successfully claimed that the defendant lied to investors, they ultimately couldn’t show a significant harm. The judge has not yet sentenced this defendant, but he could face up to 25 years in prison. The seriousness of securities fraud sentences explains why you need an experienced securities fraud attorney.
Robert Helfend has practiced criminal defense in Los Angeles County and throughout Southern California for nearly 35 years. He takes cases in both federal and state courts, and will fight aggressively for your rights and freedoms.
Don’t wait to hire experienced counsel. Contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County securities fraud case.
Photo Credit: Emily Becker, via Flickr.com