Martin Shkreli sentenced to 7 years in prison for fraud
(CNN Money) — Martin Shkreli was sentenced to seven years in prison on Friday for defrauding investors out of more than $10 million.
Shkreli, who gained notoriety for inflating the price of a life-saving drug, had faced up to 20 years behind bars for mismanaging money at three hedge funds.
He was convicted on August 5, 2017 of securities fraud and conspiracy in what prosecutors said amounted to a Ponzi scheme. Shkreli called the charges “a witch hunt of epic proportions.”
Prior to his sentencing, Shkreli was ordered by a federal judge to forfeit nearly $7.4 million as a result of his fraud convictions last year.
Brooklyn Federal Judge Kiyo Matsumoto said he must also give up his one-of-a-kind Wu Tang album, “Once Upon a Time in Shaolin,” for which Shkreli reportedly paid $2 million.
In addition to the album, Matsumoto also ordered him to give up a Picasso painting, an album called “The Carter V” by Lil Wayne, and $5 million he posted for bail.
Shkreli was convicted of fraud for deceiving investors and misusing their money while he was a portfolio manager at a hedge fund. He faces sentencing at Brooklyn Federal Court on Friday, and could potentially get up to 20 years in prison.
Shkreli was convicted on August 4, 2017, and was out on bail until September 13, when the judge threw him in jail for his online offer of $5,000 to anyone who would bring him a strand of Hillary Clinton’s hair.
Shkreli has been at the Brooklyn Metropolitan Detention Center ever since.