SEC Punishes Shkreli With Stock Trading Sanctions
The SEC has hit former pharmaceutical executive and convicted stock fraudster Martin Shkreli with a sanction barring him from associating with brokers and ratings agencies.
April 23, 2018 at 07:02 PM
2 minute read
Martin Shkreli. Photo Credit: Seth Wenig/AP
The U.S. Securities and Exchange Commission has hit former pharmaceutical executive and convicted stock fraudster Martin Shkreli with a sanction barring him from associating with brokers and ratings agencies.
Shkreli is serving a seven-year prison sentence for his conviction of two counts of securities fraud and related conspiracy count. He was convicted of running a scheme to defraud investors in two hedge funds he created, MSMB Healthcare and MSMB Capital Management.
Shkreli is appealing both his conviction and his sentence to the U.S. Court of Appeals for the Second Circuit.
The SEC brought sanctions against Shkreli, which was issued on Monday, under the Investment Advisers Act of 1940. Benjamin Brafman of Brafman & Associates, who heads up Shkreli's defense team, declined to comment on the SEC's filing.
Prior to Shkreli's sentencing, U.S. District Judge Kiyo Matsumoto of the Eastern District of New York found that the government could seize $7.36 million in Shkreli's assets, which includes $5 million from his brokerage account, the one-of-a-kind Wu-Tang Clan album “Once Upon a Time in Shaolin,” an unreleased Lil Wayne album and a Pablo Picasso painting.
On April 20, New York Attorney General Eric Schneiderman filed a motion on behalf of the state arguing that it should get first dibs on the assets to pay off the balance of Shkreli's tax bill, which is more than $480,000.
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