After an 11-week trial, Evan Greebel, former attorney to pharma bro Martin Shkreli, was found guilty of conspiracy to commit securities fraud and conspiracy to commit wire fraud.
His lawyer, Reed Brodsky, said they were "shocked by the verdict". Current Retrophin CEO Steve Aselage and former chairman Steve Richardson testified that Greebel appeared to show more loyalty to Shkreli than to the company, including by advising him about the terms of his employment agreement when the board was in the process of ousting Shkreli in late 2014.
Greebel, a former partner at Katten Muchin Rosenman who was at Kaye Scholer at the time of his arrest, was stone faced as a jury handed up guilty verdicts for one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud.
Martin Shkreli's former lawyer was convicted by a federal jury of conspiring with his ex-client to defraud investors on Wednesday. His wife burst into tears after the verdict was read. Shkreli also faces up to 20 years in prison while he sits in the Metropolitan Detention Center in Sunset Park. If Greebel acted in good faith as Retrophin's attorney, his legal team argued, the intent to conspire could not exist.
Greebel, 44, was Retrophin's outside counsel from 2011 to 2014, when prosecutors said he conspired with Shkreli to misappropriate Retrophin's assets to pay off defrauded investors.
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According to prosecutors, Greebel negotiated and prepared "settlement" agreements with the defrauded investors. Greebel was tried separately from Shkreli.
Other lawyers who worked with Greebel, testifying for the defense, said he was a talented attorney and that Shkreli was a just a hard client.
Greebel, who was outside counsel to Shkreli's former company Retrophin Inc, was found guilty by a federal jury in Brooklyn of charges that he conspired to commit wire fraud and securities fraud, the U.S. government said. He remains free on bail.
In comments to reporters following the verdict, Brodsky said his client was unfairly painted by his former association with the "toxic" Shkreli, and that he "hope [d] that the judge will evaluate the evidence and the law and right this injustice". He is now out on bail awaiting his sentencing, a date for which has yet to be set. He was convicted in August in an unrelated securities fraud scheme involving two hedge funds he ran and is now incarcerated at Brooklyn's Metropolitan Detention Center while awaiting sentencing.
The case is U.S. v. Shkreli, 15-cr-00637, U.S. District Court, Eastern District of New York (Brooklyn).