Trial Of Shkreli Lawyer Interrupted By "Potentially Career-Ending" Allegations About Prosecutor

The ongoing legal drama of former pharmaceutical CEO Martin Shkreli and his one-time lawyer (and alleged co-conspirator) just keeps getting weirder.

On Thursday, CNBC reported that the trial of Evan Greebel, a lawyer accused of helping Shkreli loot his pharmaceutical company Retrophin, has been temporarily put on hold after “potentially career-ending allegations” about a government official involved in both Shkreli’s and Greebel’s prosecution reportedly were raised by Greebel’s attorneys.

The allegations, first reported by the online legal publication Law 360, were raised Wednesday in Brooklyn, New York, federal court, where Greebel is on trial. Shkreli was convicted of three out of eight fraud counts in a separate trial over the summer.

Law 360 reported that Greebel"s trial "came to a screeching halt" Wednesday during testimony by Steven Rosenfeld, an investor in both Retrophin and one of Shkreli"s hedge funds and one of the people who was purportedly offered a fraudulent consulting agreement as a form of compensation for his losses in Shkreli’s hedge fund.

It’s unclear exactly what Rosenfeld said. Here’s how events unfolded, according to CNBC.

Law 360 reported that Greebel"s trial "came to a screeching halt" Wednesday during testimony by Steven Rosenfeld, an investor in both Retrophin and one of Shkreli"s hedge funds.

 

Rosenfeld, a non-practicing doctor called to the witness stand by Greebel"s lawyer, was reportedly being asked about what happened in 2015 when FBI agents visited his home to ask about a consulting agreement he had with Retrophin.

 

Shkreli and Greebel were accused of using bogus consulting agreements by Retrophin with investors in Shkreli"s hedge fund to repay them for their losses — but Rosenfeld claims he did actual work under the agreement.

 

According to Law 360, Rosenfeld testified he asked the FBI if he could call his attorney. A prosecutor then objected to that line of questioning.

 

That objection led to a lengthy discussion with prosecutors, defense lawyers and Judge Kiyo Matsumoto out of the earshot of jurors and observers in the courtroom.

 

Another long sidebar conference followed after Greebel"s lawyer Randy Mastro asked Rosenfeld who had attended a subsequent meeting he had with government officials, Law 360 reported.

 

Matsumoto reportedly sent jurors home for the day early. She then ordered prosecutors and defense lawyers to file sealed legal briefs "on what she described as "potentially career-ending allegations" made by the defense," according to Law 360.

 

Matsumoto said the briefs should address the question of whether statements made by federal prosecutors outside a courtroom are admissible as evidence in a case.

Assistant US Attorney David Pitluck, one of the prosecutors in Greebel"s case, said in court that the allegations raised by the defense are "very serious,” but there still haven’t been any clues as to exactly what those allegations are.
Greebel"s lawyers, in a letter to the judge filed Wednesday, wrote that statements made to Rosenfeld by government officials should be allowed into evidence "to show why Dr. Rosenfeld would have felt motivated to cooperate with the government and to provide context for what he knew in subsequent meetings."

Shkreli, who was found guilty over the summer, is awaiting sentencing at a federal jail in Brooklyn that is also home to Mexican drug lord El Chapo. His bail was revoked – while his $2 million bail was withheld – following a Facebook post offering a reward for a strand of Hillary Clinton’s hair that prosecutors successfully argued was essentially a threat. It’s unclear whether these allegations could also help Shkreli secure his freedom. He is to be sentenced in January.
 

Shkreli Going To Jail After Judge Revokes Bail

“The most hated man in America” is going to prison over a joke.

Late Wednesday, Brooklyn Judge Kiyo Matsumoto ordered that former Turing Pharmaceuticals CEO Martin Shkreli’s bail be revoked after prosecutors claimed that a Facebook post published by Shkreli on Sept. 4 was tantamount to an invitation to assault on Hillary Clinton during her upcoming book tour. In a letter demanding a bail hearing, the former hedge fund manager was described as a “threat to the community.”

Matsumoto, who presided over Shkreli’s trial which resulted in convictions on three out of eight counts of wire and securities fraud, said she would not be swayed by the defense’s argument that the post was a harmless joke and that Shkreli didn’t intend to harm anybody. Instead, the Judge revoked Shkreli’s $5 million bail and ordered him directly remanded to jail pending his sentencing, according to the Daily News. No date has been set for his sentencing.

Shkreli told the judge, prosecutors and secret service agents who asked to interview him about the post that it was intended as satire. In the original post, Shkreli offered $5,000 for a strand of Hillary Clinton’s hair, claiming that he would have a DNA analysis done to confirm “that the Clinton Foundation is willing to KILL to protect its secrets.”

See the post in question below:

Since being unceremoniously thrust into the public eye in late 2015 when he was labeled “the most hated man in the world” after his company, Turing Pharmaceuticals, hiked the price of Daraprim, a drug that treats toxoplasmosis, by 5,000%, Shkreli has made a habit of publicly antagonizing lawmakers, prosecutors and judges. True to form, Shkreli took to Facebook to blast prosecutors immediately after the hearing.

Notably, Shkreli is being thrown in jail one day before the close of Shkreli’s auction of the only copy of the Wu-Tang Clan “Once Upon A Time In Shaolin” which he purchased for $2 million in 2015. Bidding has topped out at $1 million in recent days.

In their initial request, prosecutors tried to paint Shkreli as a serial harasser of women, citing his ban from Twitter earlier this year, allegedly for harassing Lauren Duca, a freelance writer who had authored an opinion essay that criticized President-elect Trump. The day before his verdict, Shkreli wrote in a Facebook post: "trial"s over tomorrow, b****. Then if I"m acquitted, I get to f*** Lauren Duca."

Shkreli edited the Facebook post after it was first reported in the media, clarifying that the post was meant as satire. Though he says he agrees with Democratic policies, Shkreli sided with President Donald Trump during the election after expressing a frustration with PC culture.

In his sentencing, Shkreli could face as much as 20 years in prison, and although a much shorter sentence - if any - had been expected, today"s latest snafu may have just cost Martin dearly.

U.S. Wants Shkreli Jailed After Offer Of Clinton Hair Bounty

Martin Shkreli might not be able to sell that Wu Tang Clan album after Federal prosecutors late Thursday moved to revoke his bail, claiming that the former pharmaceutical company CEO and purported “most hated man in the world” repeatedly threatened and harassed former secretary of state Hillary Clinton on line.

Specifically, the Feds were incensed by what Shkreli says was intended to be a humorous post on his Facebook page offering a $5,000 bounty to anyone who could “grab” some of Clinton’s hair for him during her upcoming book tour.

"Shkreli"s latest threat is concerning not only because it has required a significant expenditure of resources by the United States Secret Service, which is charged with protecting Secretary Clinton, but also because there is a significant risk that one of his many social media followers or others who learn of his offers through the media will take his statements seriously — as has happened previously — and act on them," prosecutors wrote in a legal motion.”

US District Court Judge Kiyo Matsumoto, who presided over Shkreli’s trial which ended in him being convicted on three of eight counts of securities fraud-related offenses, ordered his legal team to file a response. She scheduled a Sept. 14 hearing for legal arguments on the issue.

Here"s the post in question:

True to form, Shkreli trolled prosecutors in response published to his Facebook page: "Hillary Cliinton"s presumptive agents are hard at work. It was just a prank, bro! But still, lock HER up. Spend your resources investigating her, not me!!"

According to USA Today, prosecutors also said Shkreli had continued to harass journalist Lauren Duca.

Shkreli had previously been banned from Twitter earlier this year, allegedly for harassing Duca, a freelance writer who had authored an opinion essay that criticized President-elect Trump. The day before his verdict, Shkreli wrote in a Facebook post: "trial"s over tomorrow, b****. Then if I"m acquitted, I get to f*** Lauren Duca."

Secret Service agents sought to question Shkreki about his post, but he declined to meet with them, prosecutors wrote.

In what sounds to us like they’re reaching for justification, prosecutors cited a USA Today story recounting how a graduate student solved a complex mathematical proof after Shkreli offered a $40,000 scholarship to anyone who could.

"Shkreli"s own prior actions, and his influence over others who have previously acted in reliance on his statements, demonstrate why the government views his latest actions with concern," prosecutors concluded in their bail revocation motion.

According to Bloomberg, Shkreli edited the Facebook post, saying it was "satire, meant for humor” after it was reported in the media.

His lawyer, Benjamin Brafman, said that while Shkreli’s posts may have been “inappropriate,” his client didn’t intend to harm anybody.

“We take the matter seriously and intend to address the issue responsibly,” Benjamin Brafman, a lawyer for Shkreli, said in an email Thursday night. “However inappropriate some of Mr Shkreli’s postings may have been, we do not believe that he intended harm and do not believe that he poses a danger to the community.”

Is it really any surprise that federal prosecutors in Brooklyn, where Hillary Clinton’s presidential campaign was based and where Clinton friend (co-conspirator?) and former Attorney General Loretta Lynch once served as US attorney, are unwilling to let a joke about Clinton slide? Even if Shkreli remains free, the complaint is sure to cost him tens of thousands more in legal fees. Perhaps that"s the ultimate goal.