r/news Jan 14 '22 Silver 19 Gold 1 Helpful 19 Wholesome 18 Evil Cackle 3

Shkreli ordered to return $64M, is barred from drug industry

https://apnews.com/article/martin-shkreli-daraprim-profits-fb77aee9ed155f9a74204cfb13fc1130
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u/amiaffe Jan 14 '22

A sacrifice for the appeasement of the unwashed masses.

What Shkreli did was completely in line with the economic system of the USA and the so-called free market's logic. Shkrelli's crime was openly admitting to it.

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u/WelpSigh Jan 14 '22

i mean, he did not openly admit to securities fraud. his shit with drug price gouging raised his profile and made prosecuting him easier, but that wasn't what he got convicted for. he defrauded investors, especially large hedge funds, which is generally not OK for anyone (see: elizabeth holmes)

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u/heresyforfunnprofit Jan 14 '22

None of Shkreli’s investors lost money, and the charges against him were driven by complaints originating from the DA, not from his investors - in securities fraud cases, that’s practically unheard of. That’s a tidbit that’s often overlooked in his “trial”.

I concur that he was a dick, but he was railroaded for political reasons, not for securities fraud. They started investigating him without a complaint at the behest of politicians, and kept investigating until they nailed him on some technicalities that were essentially over-general summaries during conference calls with investors. That’s the equivalent of the mayor having cops secretly following you constantly until they see you speeding up at a yellow or rolling thru a stop sign, then charging you with a felony for fleeing the scene. It was a complete witch hunt.

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u/WelpSigh Jan 15 '22 edited Jan 15 '22

i mean, there was a small army of investors who testified against him. he lied to them to induce them to put money in. whether or not they made money isn't relevant, that's fraud. it's something that gets prosecuted all the time. i agree that the political aspect made him a juicy target but i don't really think he got prosecuted for something no one else would have gotten hit for. it was robbing peter (retrophin) to pay paul (angry investors), which is pretty classic. he claimed his fund was making excellent returns while it was actually losing money, and investors who put money in were told it had shitloads of assets when in fact it had nothing. that isn't a technicality.

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u/Han_Slowlo Jan 14 '22

Modern American business logic goes as follows:

  1. Make promises you can't currently fulfill
  2. Raise enough capital with your empty promises to...
  3. Hire enough talent to make your unfulfillable promises a reality
  4. Rinse and repeat

In this system, Holmes' only crimes were being unable to pull off step 3. I'm not saying she should be absolved, but I am definitely saying we should reconsider the way we vilify her in the context of the toxic system that produced her.