A judge ruled Monday that former U.S. drug company executive Martin Shkreli will be held responsible for $10.4 million in financial losses incurred by investors when he is sentenced for securities fraud, according to a Reuters report.
Here are eight things to know.
1. Mr. Shkreli is former CEO of Turing Pharmaceuticals and KaloBios Pharmaceuticals.
2. The former Turing CEO became infamous for increasing the price of anti-infection drug Daraprim by more than 5,000 percent in 2015, according to the report.
3. Mr. Shkreli, 34, was charged with securities fraud in 2015 unrelated to the Daraprim price hike, and a jury convicted him of those charges in August 2017, reports Reuters. He's been in jail about six months.
4. The security fraud conviction involved being untruthful with investors. According to the report, Mr. Shkreli misrepresented the performance of hedge funds, and conspired to manipulate the stock price of the pharmaceutical company Retrophin, which he founded.
5. Mr. Shkreli's attorneys have argued he is not responsible for financial loss since investors ultimately benefited. That's because he paid investors in various ways, including Retrophin shares, as well as through settlement agreements and consulting contracts with the company, according to the report. Prosecutors have not disputed this argument.
6. On Monday, the judge rejected the argument made on Mr. Shkreli's behalf, saying the former drug company executive will be held responsible for financial losses, per federal law, reports Reuters. The publication states losses include about $6.4 million investors put in Mr. Shkreli's funds as a result of fraud, as well as about $4 million in intended loss for his efforts to increase Retrophin stock prices.
7. Benjamin Brafman, an attorney for Mr. Shkreli, told Reuters via email he was "disappointed by the ruling but still hopeful that the court will find it in her heart to impose a reasonably lenient sentence." A spokesperson for prosecutors declined the publication's request for comment.
8. The decision could result in more prison time for the former drug company executive as the amount of financial loss influences federal sentencing guidelines. Mr. Shkreli's sentencing hearing is slated for March 9.
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