Shkreli's ex-lawyer convicted of aiding fraud scheme

Shkreli's ex-lawyer convicted of aiding fraud scheme

A NY lawyer who once advised Martin Shkreli was convicted on Wednesday of helping him defraud a pharmaceutical company, a charge a different jury cleared the drug executive of when it found him guilty of securities fraud earlier this year.

Former pharmaceutical executive Martin Shkreli pauses while speaking to the press after the jury issued a verdict in his case at the U.S. District Court for the Eastern District of New York, August 4, in Brooklyn.

Evan Greebel, who was outside counsel to Shkreli's former company Retrophin Inc, was found guilty by a federal jury in Brooklyn of charges that he conspired to commit wire fraud and securities fraud, the U.S. government said.

The charges he and Mr. Greebel faced were related to Mr. Shkreli's management of, Retrophin and of two hedge funds he ran, MSMB Capital and MSMB Healthcare, from 2009 to 2014.

His lawyer, Reed Brodsky, said they were "shocked by the verdict".

"Greebel's conviction highlights the deliberate actions he took in conspiring with hedge fund manager Martin Shkreli to defraud investors", said William F. Sweeney Jr., assistant director-in-charge for the FBI New York Field Office.

Greebel, 44, was a partner at the law firm Katten Muchin Rosenman when he was working for Retrophin.

"While it's become increasingly more evident that Greebel exploited his knowledge of the law in his efforts to break the law, today we finally see justice served in a case that's spent no shortage of its time in the spotlight", Mr. Sweeney said.

The verdict followed an 11-week trial before District Judge Kiyo A. Matsumoto, according to a statement from the U.S. Attorney's Office, Eastern District of NY. Just four months later in December 2015, he was arrested and charged with fraud.

Shkreli was out on bail while he awaited sentencing, but that was eventually revoked by Judge Matsumoto after the Pharma Bro asked viewers of his Facebook livestream to get a lock of then presidential-candidate Hillary Clinton's hair in exchange for $5,000.

Prosecutors have said that Shkreli lied about the funds' finances to lure investors and concealed devastating trading losses.

In total, Shkreli and Greebel caused Retrophin and its investors to lose more than $11 million through their settlement and sham consulting agreements, according to the indictment.

During the trial, Greebel's attorneys tried to paint him as victimized by the notorious Shkreli; during his opening statement for the defense, Gibson Dunn's Reed Brodsky said Shkreli lied about key facts to Greebel.

Mr. Greebel was also accused of conspiring with Mr. Shkreli to exercise secret control over Retrophin shares belonging to several other shareholders. The 10-week trial ended after the jury convicted him of wrongdoing.

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