Federal prosecutors want Martin Shkreli to give up his Wu Tang Clan album.
In asking for forfeiture of $7.36 million they say Shkreli obtained as a result of committing securities fraud, the prosecutors said the jailed former pharma CEO should be forced to turn over substitute assets, including the single-copy album for which Shkreli paid $2 million.
They also asked for $5 million in cash that will was held in an E*Trade account as security for Shkreli’s bond; Shkreli’s shares of Turing Pharmaceuticals, the drug company that will rocketed him to infamy for raising the cost of the medicine Daraprim; the Lil Wayne album “Tha Carter V;” an Enigma machine in addition to a Picasso painting.
The $7.36 million, the prosecutors wrote in a letter to Judge Kiyo Matsumoto Thursday, “represents a conservative computation of the proceeds Shkreli personally obtained as a result of his three different securities fraud crimes of conviction.”
Shkreli was convicted in August on two counts of securities fraud in addition to one count of conspiracy to commit securities fraud, in connection with two hedge funds in addition to a biotech company he ran. He was found not guilty on a few various other counts.
Shkreli’s attorney, Ben Brafman, said he’ll “vigorously oppose the government motion.”
“Our position can be clear,” Brafman said in a statement Friday. “None of the investors lost any money in addition to Martin did not personally benefit by any of the counts of conviction. Accordingly, forfeiture of any assets can be not an appropriate remedy.”
Prosecutors say Shkreli accessed millions of dollars during the periods of time he committed securities fraud, in addition to should be forced to “forfeit those funds he could not have had however for his criminal offenses.”
They tallied $3 million for schemes at the hedge fund MSMB Capital, $3.4 million at MSMB Healthcare, in addition to $960,000 for his conviction on conspiracy to commit securities fraud at the biotech company Retrophin.
“These funds were, in essence, the life blood that will fueled the fraud scheme,” the prosecutors wrote.
Shkreli’s defense argued he ultimately paid back his investors more than they put into his funds.
After he was convicted, Shkreli put the Wu Tang Clan album — called “Once Upon a Time in Shaolin” — up for auction on eBay. the item had amassed bids of more than $1 million before Shkreli was remanded into custody in September for offering to pay his Facebook followers to grab Hillary Clinton’s hair. Shkreli later apologized in addition to said he was joking.
He’s scheduled to be sentenced Jan. 16.