Judge orders 'Pharma Bro' to forfeit $7.3M in fraud case

Martin Shkreli must forfeit almost $7.4 million judge orders

Martin Shkreli must forfeit almost $7.4 million judge orders

A federal judge has ordered former pharmaceutical CEO Martin Shkreli to forfeit almost $7.4 million because of his fraud convictions past year.

Judge Kiyo Matsumoto said that in order to satisfy that award amount Shkreli - who was said to be completely cash-broke previous year by his lawyer - must forfeit his interest in a set of "substitute" assets.

The $5 million in cash now held in an E*Trade brokerage account as security for Shkreli's bail.

His lawyer didn't immediately respond to a request for comment.

In December 2015, Shkreli told Bloomberg Businessweek that he had bought the Wu-Tang Clan's "Once Upon a Time in Shaolin" when the hip-hop group auctioned the sole copy of the album to the highest bidder.

Shkreli has also boasted of owning a Picasso painting.

The assets include $5 million in cash in an E-Trade brokerage account used as security for Shkreli's bail and Shrkeli's shares and interest in Vyera Pharmaceuticals, formerly known as Turing Pharmaceuticals.

U.S. District Judge Kiyo Matsumoto issued the order against the jailed Shkreli four days before he is to face sentencing for his conviction past year on charges he cheated wealthy investors in two failed hedge funds he was managing.

The defense had argued that Shkreli shouldn't have to forfeit anything because the hedge fund investors actually ended up making a profit from drug company stock he gave them. They said he spent investor funds on personal expenses "to maintain the image of a successful hedge fund manager".

The forfeiture order does not include any fines or restitution Matsumoto might impose at sentencing.

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