‘Pharma Bro’ Shkreli Convicted of Fraud in Court

‘Pharma Bro’ Shkreli Convicted of Fraud in Court
Former drug company executive Martin Shkreli arrives at District Court for the fifth day of jury deliberations in his securities fraud trial in the Brooklyn borough of New York City on August 4, 2017. REUTERS/Carlo Allegri
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NEW YORK—A jury convicted Martin Shkreli, the brash former drug company and hedge fund executive, on Friday of defrauding investors in hedge funds he ran years before he gained fame for jacking up the price of a drug.

Jurors in District Court in Brooklyn found Shkreli guilty of two counts of securities fraud and one count of conspiracy. But they acquitted him of five conspiracy counts, including conspiracy to steal from his old drug company, Retrophin Inc .

Securities fraud carries a maximum sentence of 20 years in prison, though defendants in such cases rarely receive the maximum sentence.

Federal prosecutors had accused the 34-year-old New Yorker of lying to investors in the funds and looting Retrophin to pay them back.

Immediately after the verdict, Shkreli appeared somewhat shaken. But when he emerged from the courthouse later to talk to reporters, he was happy and confident.

Former drug company executive Martin Shkreli exits District Court after being convicted of securities fraud, in the Brooklyn borough of New York City on August 4, 2017. (REUTERS/Carlo Allegri)
Former drug company executive Martin Shkreli exits District Court after being convicted of securities fraud, in the Brooklyn borough of New York City on August 4, 2017. REUTERS/Carlo Allegri