The Saga Continues

Tuesday, February 27, 2018

Martin Shkreli Might Go to Prison for Way Longer Than We Thought

A federal judge decided Pharmabro's crimes caused a loss of $10.4 million. Here's what that means.

When Martin Shkreli was convicted of fraud back in August 2017, it was far from certain he'd spend much time behind bars. Sure, a federal jury agreed he lied to hedge fund investors and cooked the books to pay some of them back from the coffers of a drug company he founded. But Shkreli's entire defense was predicated on the fact that, while he might have misled people, none of them ultimately lost money. And the general rule of thumb in federal fraud cases is that sentencing is principally determined by the what's called the "loss amount" of the crime in question.