The man who was once dubbed “the most hated man in America” may soon find himself in the most hated man in a federal penitentiary.
Martin Shkreli, who incited widespread outrage when his Turing Pharmaceuticals jacked up the cost of a lifesaving AIDS pill by more than 5,000%, was convicted in federal court today on eight counts of securities fraud, conspiracy to commit securities fraud, and conspiracy to commit wire fraud..
His convictions do not stem from his remorseless effort to prey on the ill, because that is not a crime in the United States.
Rather, he has been convicted of defrauding two hedge funds that he managed between 2009 and 2014 — MSMB Capital Management and MSMB Healthcare. Shkreli reported that he was managing returns of nearly double the 18 percent he was bringing in.
Additionally, the Securities Exchange Commission (SEC) reports that Shkreli lied to investors about his ability to cover losses on trades, leaving others on the hook for millions of dollars.
“When you lie to people knowingly and intentionally to get their money, it’s a crime,” federal prosecutor Jacquelyn Kasulis told jurors in her closing argument, as reported by HuffPo. “And that is exactly what Martin Shkreli did. He knowingly lied over and over again to his investors.”
Shkreli faces up to twenty years in prison — a helpful reminder that even in Donald Trump’s America, justice can be served.