Martin Shkreli, Disclosing $70 Million Net Worth In 2015, Says "Doesn't Have Any Cash" Left

Tyler Durden's picture

Ahead of Martin Shkreli's fraud trial which begins next week, the disgraced biopharma executive appeared in court Monday, asking the judge to cut his bail from $5 million to $2 million, citing a lack of funds and the need to pay for his defense and back taxes. He faced were two problems: as prosecutor Alixandra Smith countered, Shkreli has plenty of cash as per his own relentless twitter boasts, and also his self-disclosed net worth.

According to Reuters, Smith said at Monday's hearing that Shkreli had reported his net worth at $70 million when he was arrested in 2015, although as Shkreli's lawyer, Benjamin Brafman, conceded most of that is locked up in stock: while Shkreli still owned a share of Turing Pharma worth $30 to $50 million he could not sell it without the consent of the other partners in the company.

And then there are the tweets. In addition to his self-reported assets, Smith said that Shkreli has plenty of cash citing a recent series of boasts he’s made on social media.

Quoted by Bloomberg, Smith said that in a May 26 post, Shkreli offered a $100,000 bounty to find Seth Rich's killer. She also said he flaunting purchases like a $2 million Wu-Tang Clan album, an unreleased Lil Wayne album, a Picasso, a World War II-era Enigma code breaking machine and had recently promised a Princeton University student $40,000 for solving a mathematical proof.

Shkreli's legal team responded by saying that the former CEO fabricated much of his social media outbursts, with lawyer Brafman urging the judge to dismiss Shkreli’s proclamations.

"Some of these preposterous statements Mr. Shkreli made are his way to remain relevant," he said, adding that his client is "traveling to the beat of a very unique drummer."

"Tweeting has become, unfortunately so fashionable, but it’s not always true. When people tweet, they don’t always mean what they say." It wasn't immediately clear what exactly Shkreli had lied about.

Instead, Brafman said that the accused securities fraudster now "doesn't have any cash" and according to CNBC, Brafman suggested that "the one-of-a-kind Wu-Tang Clan album" that Shkreli paid $2 million for several years ago is "probably worthless."

Brafman argued that while "Shkreli is still worth a lot of money" he is drowning in debt and is cash poor, explaining that none of the $3 million being sought would go to Shkreli who "owes $6 million in taxes." But the lawyer said the Internal Revenue Service has agreed, for now, to accept just $1 million, and New York State tax officials to accept $1.25 million in acknowledgment that some of Shkreli's tax liability might be reduced by losses he has incurred. Once the tax authorities get their money, the balance of the $3 million could be paid out to two other entities.

The lawyer also said Shkreli owes $326,085 to his civil law firm, Fox Rothschild, to date, and owes another $50,000 to an accounting firm that has does forensic work for his defense, and helped clean up his tax issues.

That said, Shkreli has not had a problem paying millions to Brafman and his legal team.

Smith said Shkreli's company Retrophin has paid defense lawyers $4.8 million and Shkreli may try to use any returned bail funds to pay certain creditors who’ve sued him and won multi-million judgement against him. "Our concern is the defendant is using this as a mechanism to pick and choose which creditors he wants to pay," she said.

In denying the motion to reduce bail, District Judge Kiyo Matsumoto  cited that last concern. She allowed Brafman to renew the motion in the future if some of the concerns could be alleviated, CNBC reported.

Both prosecutors and the defense told Matsumoto that they expected the trial to last between five to six weeks. That angered the judge, who had been told months ago to expect a three-week-long trial, and who had budgeted her trial schedule accordingly. Prosecutors as of now expect to call up to 57 witnesses.

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Antifaschistische's picture

I just have $50 million in gold in the van down by the river.   NICE

Row Well Number 41's picture

Them "Billable Hours" add up quick.

Shpedly's picture

Many years ago a very wise old man told me this. "Know as many lawyers as you can but live your life such that you will never need one."

youshallnotkill's picture

Too bad that the president never heard that advise. 

yomutti2's picture

I wonder if he'll still have that goofy smile when he's getting ass-raped in prison?

 

fx's picture

Anyone notice the foolish smile similar to that of jim Carey?

Fuck this asshole. I'm sure he has a couple million stored safely. Or he is indeed a complete moron.

DontGive's picture

I'm not a fanboi - but you motherfuckers are sure looking jelley.

Four chan's picture

i find him obnoxiously hilarious.

AllOfGood's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobproplan.com

GracchusBrothers's picture

Shkreli? Is that you pimping click-bait for nickles?

 

IENTJ's picture

He spent it on hookers and blow ... and special Bolivian penis pills ... and more blow.

bamawatson's picture

and the remainder, he wasted

knukles's picture

$ 70MM and "no cash"
Have a bunch of jumbo CD's, but alack and alas, no cash.
Shuckie darns.  And we're outta checks anyhow.

Ave Reg Nuklhed's picture

+1

If you didn't come to party, take your candy ass home

Dilluminati's picture

What an asshole, glad he is broke, hope he gets sick and can't afford his medication the cocksucker

JLee2027's picture

Don't be so glad for others misfortune, because if they decide to come after you, you'll be wiped out and picked clean in no time.

83_vf_1100_c's picture

  He has money hidden away in The Caymans unless he was a complete retard. Even retards with $70 mil have advisers who do that for them. He is not broke, just can't get at that money while he is under the microscope.

  Remember kids, always be nice to the people you meet going up the ladder...

Blazing in BC's picture

I'm glad I have lawyer insurance

scoutshonor's picture

Is there a gofundme set up?  

montresor's picture

can tell from his haircut the guy is broke

youshallnotkill's picture

Sucks to be the most hated man in America while broke. So sad. 

He could probably make plenty of cash by allowing people to spit at him for a dollar.

vato poco's picture

'Coming to your town, this weekend only! Piss on (((Martin))), just $25!! Located just outside the city limits!!'

might work ... 

His name was Seth Rich

#PizzaGate

#WhatsontheLaptops

#WhyUNoIndictWeiner

#WhyUNoIndictPodesta

#WhoRtheAwanBrothers

#DrainthatSwamp

#BuildThatFuckinWall

#TheyAllHaveToGoBack

Mazzy's picture

((( Martin Shrekli )))

adr's picture

Sell the Wu Tang album to Jay Z. Actually he probably wouldn't want it. But he'd probably trade it for letting Beyonce shit on his face. He looks like the kind of guy who's into that kind of thing. 

LasVegasDave's picture

experienced with that?

CHoward's picture

Not having cash doesn't necessarily mean you're broke.

 

Man - this guy has a face you just want to punch!  Pompus lil bitch.

SloMoe's picture

Probably could have avoided this whole mess, if he would just wipe that self-satisfied smirk off his face.

Mr. Schmilkies's picture

How nicely, justifiably, ironic.  I suggest they raise his bail, not lower it.

Mr. Schmilkies's picture

By the way, I suggest Jim Carrey play him in the movie.

BeepBeepRichie's picture

Wu Tang Clan aint nuttin to fuk wit

Porous Horace's picture

You gotta diversify yo' bonds, nigga.

RawPawg's picture

Pissing Off The Judge is NOT A Wise Legal Maneuver 

Sizzurp's picture

Couldn't happen to a nicer guy.  The lawyers took it all.

Reichstag Fire Dept.'s picture

Shekreli is getting kicked around so much that I'm starting to like him.

aloha_snakbar's picture

I think we should surgically sew his face onto Hillarys vagina...see if he still feels like grinning...

The Shodge's picture

You only need to look at his face to know that he is an asshole

logicalman's picture

Maybe a pre-emptive strike.

If he can convince the world he's broke it's less likely anyone will try to sue the fucker.

If I'd had $70mill in 2015, I'd still have a big chunk of it somewhere well hidden.

As things turned out I didn't even have $70,000 and a lot of what I did have was grabbed by the government.

I started out with bugger all and I'm about even, these days.

 

JailBanksters's picture

Another German Jew using the Corzine Defense, it Vaporized

HRH Feant2's picture

Time to have a liquidation sale. That's what you do when you are cash poor. I have no sympathy for this moron. None.

lolmao500's picture

What's sick is that this POS is the only one on trial.... what he did, HUNDREDS OF BIG PHARMA SCUM DO EVERY SINGLE DAY AND DO IT EVEN WORSE... but none of them go to jail for it... This is just a big distraction to make believe the slaves that something is being done...

peippe's picture

guys like this really have to give up smirking like that in public places.

nobody will believe any of your lies with a mug like that, quit it.

& i do hope he has bags & bags of kruggerands somewhere to help him get by after all the legal crap,

the people investing in him are more amoral than he is.

quadraspleen's picture

"His client is "traveling to the beat of a very unique drummer."

Lawyer-speak for "he's absolutely full of shit"

Sudden Debt's picture

Wouldn't you hide your money and claim you're broke? :)

I'd buy bitcoins, await my trial, and move out and start over somewhere in South America or Azia.