Federal Appeals Court Upholds 'Pharma Bro' Conviction

A federal appeals court Thursday upholds the fraud conviction of 'pharma bro' Martin Shkreli.
By Rob Lenihan ,

A federal appeals court Thursday upheld the fraud conviction of notorious "pharma bro" Martin Shkreli.

The United States Court of Appeals for the Second Circuit in New York dismissed Shkreli's argument that faulty jury instructions led to his conviction.

"We have considered Shkreli's remaining arguments and find them to be without merit," the judges said in the seven-page decision. "Accordingly, we AFFIRM the judgment of the district court."

The three-judge panel also affirmed a ruling that he forfeit $6.4 million when he was sentenced for his conviction on two counts of securities fraud and one count of conspiracy to commit securities fraud.

Mark Baker, Shkreli's appeals lawyer told CNBC, "We're obviously disappointed, and we will consider and weigh whatever remedies are available." Baker said he would consider asking the U.S. Supreme Court to hear the case.

Shkreli is currently serving a seven-year sentence in a federal prison in Pennsylvania. He was convicted after a trial in Brooklyn federal court in 2017.

His bond was revoked when a judge said he was a danger to the public because of his offer on Facebook of a $5,000 bounty for samples of Hillary Clinton's hair.

Prosecutors introduced evidence that he had repeatedly lied to investors about the financial performance of two hedge funds he ran, and then used money invested in those funds to help start the pharmaceuticals company Retrophin. 

In 2015, Shkreli became infamous when another drug company he founded, Turing Pharmaceuticals, hiked the price of an anti-parasite medication used to treat pregnant women, newborns, and patients with HIV by more than 5,500%.

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