But until then, judge Matsumoto had made his first public appearance since the judge withdrew the bond in September – a bit of bad news.
Matsumoto told Shkreli’s lawyer that she would deny their request and make a jury verdict on one of the three convictions he was convicted last summer. The count is collusion in securities fraud, which is associated with the purchase and sale of Retrophin, a pharmaceutical company founded by Shkreli.
Matsumoto, however, is not yet sure how she will spend the money on her crime.
Prosecutors say the damage is between $9 million and $20 million, or more – and defense lawyers say there is no real loss.
When he was convicted of fraud and sentenced to two hedge funds and securities fraud counts, the sharp divergence between opinion was crucial to the fate of Shkreli.
If it accepts the defense’s version, the federal sentencing guidelines may offer a brief 16-month prison term – and Shkreli’s lawyers might argue less time than next month.
On the other hand, if the judge accepts the prosecutor’s charge, the guidelines may suggest a period of up to 300 months or longer for Shkreli.
The question may depend on whether Shkreli without trust – or don’t have much credit – his hedge fund investors in trouble with his deal how many actual obtained benefits, rather than merely through his first two hedge fund money for evaluation.
Matthew Schwartz, a lawyer who is not involved in the Shkreli case, told CNBC: “in fraud cases, loss is the largest component of sentencing guidelines.”
“In the Shrkeli case, if the government is right and the loss is between $9.5 and $25 million, then the applicable sentencing guidelines will be increased by 20 levels; If Shkreli is correct, the loss is zero, “Schwartz says.
“The 20 levels of difference in sentencing guidelines can easily mean the difference between decades in prison,” he said. “Of course, the guideline is that the court doesn’t have to comply.”
Shkreli has spent five months in federal prison in brooklyn, and has since withdrawn his $5 million bond every month after being convicted by a jury. Three of the eight are criminals. The judge said in September that his agent was in danger because Shkreli had received a $5,000 reward from anyone who offered him a sample of Hillary Clinton’s hair on Facebook.
The stunt was just the latest in a series of controversial antics by Shkreli.
He publicly for the first time in the summer of 2015 was a Wolf, when he created a company called Turing Pharmaceuticals company, and bought a few decade of parasite drug resistance Daraprim, immediately the drug price increased from $13.50 per pill to $750.
The move makes Shkreli a sign of expensive drug pricing, in large part because Daraprim’s users include infants, pregnant women and hiv-infected people.
“In this case, I think his performance is quite good,” Benjamin Brafman Shkreli lawyer in a one hour after the court hearing, said when asked how his client when unpleasant locking performance, he said.
When asked about his client’s beard – Shi Kelei relatively clean when Leon was jailed last summer – brough scoffs: “if I wrote an article about your beard, you will like it?”
Shkreli looking relaxed, looks like his physique, since he has been in prison at the hearing not speak loudly, and keep at least – for him – a relatively poker face.
However, when prosecutors argued that an argument was “absurd”, Shkreli raised his eyebrows and turned to his other lawyer, Marc Agnifilo, with a smiley face.
Also on Friday, Matsumoto reserved a ruling on the amount Shkreli should forfeit to the federal government when sentenced.
Prosecutors want Shkreli to pay $7.36 million. They also want him to give up the assets, including the unique wu tang clan album and expensive artwork, in order to get the penalty during his conviction.
Matsumoto refused to release Shkreli’s bonds, though he was jailed because she could have used $5 million to confiscate her orders.
Brough, like his past, at the hearing, argues that due to all the investors in hedge funds eventually bankrupt, actually Shkreli situation is rare (if not unique), all the investors in hedge funds because they end up with the original refund, after he launched Retrophin with cash and shares to investors to pay the money.
“All of these people made a lot of money at the end of the test,” Mr. Brafman argued.
Shkreli brough, points out, don’t use the hedge fund investors’ money to support a lavish lifestyle “, but to create a legitimate drug companies, some of the money from a hedge fund.
But us assistant attorney, Alixandra Smith, argued that Shkreli fraudulently concealed the poor performance of his money, making him look like a successful hedge fund manager.
Mr Smith also said that Shkreli was “investing in” investor funds by buying tickets to the jay-z concert and buying taxis and restaurants, which ended with Retrophin.