Trial Of Shkreli Lawyer Interrupted By "Potentially Career-Ending" Allegations About Prosecutor

The ongoing legal drama of former pharmaceutical CEO Martin Shkreli and his one-time lawyer (and alleged co-conspirator) just keeps getting weirder.

On Thursday, CNBC reported that the trial of Evan Greebel, a lawyer accused of helping Shkreli loot his pharmaceutical company Retrophin, has been temporarily put on hold after “potentially career-ending allegations” about a government official involved in both Shkreli’s and Greebel’s prosecution reportedly were raised by Greebel’s attorneys.

The allegations, first reported by the online legal publication Law 360, were raised Wednesday in Brooklyn, New York, federal court, where Greebel is on trial. Shkreli was convicted of three out of eight fraud counts in a separate trial over the summer.

Law 360 reported that Greebel's trial "came to a screeching halt" Wednesday during testimony by Steven Rosenfeld, an investor in both Retrophin and one of Shkreli's hedge funds and one of the people who was purportedly offered a fraudulent consulting agreement as a form of compensation for his losses in Shkreli’s hedge fund.

It’s unclear exactly what Rosenfeld said. Here’s how events unfolded, according to CNBC.

Law 360 reported that Greebel's trial "came to a screeching halt" Wednesday during testimony by Steven Rosenfeld, an investor in both Retrophin and one of Shkreli's hedge funds.


Rosenfeld, a non-practicing doctor called to the witness stand by Greebel's lawyer, was reportedly being asked about what happened in 2015 when FBI agents visited his home to ask about a consulting agreement he had with Retrophin.


Shkreli and Greebel were accused of using bogus consulting agreements by Retrophin with investors in Shkreli's hedge fund to repay them for their losses — but Rosenfeld claims he did actual work under the agreement.


According to Law 360, Rosenfeld testified he asked the FBI if he could call his attorney. A prosecutor then objected to that line of questioning.


That objection led to a lengthy discussion with prosecutors, defense lawyers and Judge Kiyo Matsumoto out of the earshot of jurors and observers in the courtroom.


Another long sidebar conference followed after Greebel's lawyer Randy Mastro asked Rosenfeld who had attended a subsequent meeting he had with government officials, Law 360 reported.


Matsumoto reportedly sent jurors home for the day early. She then ordered prosecutors and defense lawyers to file sealed legal briefs "on what she described as 'potentially career-ending allegations' made by the defense," according to Law 360.


Matsumoto said the briefs should address the question of whether statements made by federal prosecutors outside a courtroom are admissible as evidence in a case.

Assistant US Attorney David Pitluck, one of the prosecutors in Greebel's case, said in court that the allegations raised by the defense are "very serious,” but there still haven’t been any clues as to exactly what those allegations are.
Greebel's lawyers, in a letter to the judge filed Wednesday, wrote that statements made to Rosenfeld by government officials should be allowed into evidence "to show why Dr. Rosenfeld would have felt motivated to cooperate with the government and to provide context for what he knew in subsequent meetings."

Shkreli, who was found guilty over the summer, is awaiting sentencing at a federal jail in Brooklyn that is also home to Mexican drug lord El Chapo. His bail was revoked – while his $2 million bail was withheld – following a Facebook post offering a reward for a strand of Hillary Clinton’s hair that prosecutors successfully argued was essentially a threat. It’s unclear whether these allegations could also help Shkreli secure his freedom. He is to be sentenced in January.


SILVERGEDDON Thu, 12/14/2017 - 19:12 Permalink

Bunghole for hire, cheap. Skinny arrogant little tight white guy available to stretch for smokes and lube. Long term contract available - 10 - 15 years. Couldn't happen to a nicer guy. Wu Tang that, Martin ! 

greenskeeper carl lil dirtball Thu, 12/14/2017 - 19:29 Permalink

As much of s scumbag as he comes across as, and as much as his face just looks like it's begging for a fist, I'd still find it absolutely hilarious if he went free just because it would be awesome to watch the left go apoplectic over it.

Plus, this dude is a small fry. I, personally, think it's a waste of resources while Corrine et al are still free. Start at the top

In reply to by lil dirtball

fleur de lis lil dirtball Thu, 12/14/2017 - 19:57 Permalink

Yep -- they can't figure out how Shkreli's brain works only that it is brilliant.They know he is brilliant and he cannot be controlled because they cannot locate his weak spot to compromise or bribe him.So since they cannot figure him out they will take him out of circulation no matter how many legal contortions are required.This is nothing but pure, raw fear on the part of the establishment.

In reply to by lil dirtball

besnook Thu, 12/14/2017 - 19:13 Permalink

the prosecution was probably at the meeting with the fbi to threaten the witness with prosecution if he didn't testify in a way favorable to the prosecution, wink, wink.

LetThemEatRand Thu, 12/14/2017 - 19:16 Permalink

Speculation, but it would make sense that the prosecutor told the witness that if he would just say that he was not doing actual work and instead was being paid under the table as alleged by the prosecutor, that he would be given immunity versus becoming part of the investigation.  It would be career ending for a prosecutor to tamper with a witness/tell him to lie in exchange for not being the subject of criminal charges.

Miss Expectations Thu, 12/14/2017 - 19:32 Permalink

Giglio v. United States Facts of the caseJohn Giglio was convicted of passing forged money orders. While his appeal to the U.S. Court of Appeals for the Second Circuit was pending, Giglio’s counsel discovered new evidence. The evidence indicated that the prosecution failed to disclose that it promised a key witness immunity from prosecution in exchange for testimony against Giglio. The district court denied Giglio’s motion for a new trial, finding that the error did not affect the verdict. The Court of Appeals affirmed.QuestionIs the prosecution’s failure to disclose a promise of immunity made to a key witness grounds for a new trial?ConclusionYes. Chief Justice Warren E. Burger, writing for a unanimous court, reversed the conviction and remanded the case for a new trial. The Supreme Court held that evidence of the agreement was relevant to the witness’ credibility. Because the new evidence affected the witness’ credibility and the prosecution’s case rested almost entirely on this witness’ testimony, the original trial violated due process and entitled Giglio to a new trial. Justice Lewis F. Powell and Justice William H. Rehnquist did not participate. 

Miss Expectations Thu, 12/14/2017 - 19:35 Permalink

"A problem occurred with this webpage so it was re-loaded"This has been happening all day long.  Can barely read anything....posting...forget about it.Am I the only one? 

TheEndIsNear Miss Expectations Fri, 12/15/2017 - 01:17 Permalink

I have noticed that lately my first up/down vote freezes my web browser for a few seconds, then the next up/down vote is instantaneous, but then the pattern repeats. Every other up/down vote requires waiting a few seconds. I'm not sure if it's my web browser or some new "feature" of ZH.

I have also noticed that up/down voting by others seems to have decreased significantly lately. Is anyone else experiencing this? Could this be the reason for the apparent paucity of voting on comments?

It does not seem to be a function of either enabling or disabling the browser plug-in NOSCRIPT, although generally I do not allow scripts to run in my browser.

In reply to by Miss Expectations

koan Thu, 12/14/2017 - 19:46 Permalink

Strip em all down naked, drive them to Baltimore, and chain them to a curb in the worst part of town with their names painted on their ass.

east of eden Thu, 12/14/2017 - 20:15 Permalink

First of all, Shrekel, of whatever his fucking name is, should never have been allowed to raise prices on critical drugs by 7,700%. So now we have multiple trials, costing taxpayers millions of dollars simply because Congress is too fucking bought off to make proper legislation.What is it that you people don't get about making laws designed to protect people? So the 'system', allowed a prick, and likely a raging psychopath, to acquire a corporation and then literally murder tens of thousands of people. That isn't 'free market captialism', it is 'predatory capitalism', and you better figure out damn quick which form you really prefer, because as it is now, the cracks are so large that I don't think any amount of cement and plaster can cover them over. 

Reaper Thu, 12/14/2017 - 21:10 Permalink

The courts are run by a prosecutor/FBI/judge cabal which nurtures, protects and rewards its own.  The "Rule of Law" with honest prosecutors, FBI or judges is a myth.

Rex Andrus Thu, 12/14/2017 - 21:45 Permalink

Let this be a lesson to you. After a fair and speedy trial hang them, so you don't have to let them go after you prosecute the prosecutor. Pretty sure I couldn't hack jury duty without calling the court a bunch of crazy kindergarten assclowns playing a psychotic game of House.

BetterRalph Thu, 12/14/2017 - 22:01 Permalink

Where does one go to complain about problems with missing court filings? In other words you filed it, but it hasn't shown up three days later, or it sometimes shows up with mistakes. Someone is dicking around with it behind the scene. This can only end real bad.

For example MY faith in the courts is shot.
FBI, DHS, DOJ leaders ditto.

Tough to now track of how many people need to be locked up just to make me start to have faith again. I probably need to sit down with paper and pencil writing names down for a day or two. People that need to face the PIPER@leavenworth I can not possibly be alone in this picture or whatever you want to call it. Nightmare more like.

webmatex Fri, 12/15/2017 - 07:17 Permalink

Seems courts in US are run by judges controlled by either Dems or Reps.When something goes wrong the Pols  choose a judge from their side to sort things out.Look at all the Hillree and DWS lawyers and judges, some are family.Common law would solve many things.