1 00:00:00,599 --> 00:00:03,000 In this episode of American Greed. 2 00:00:03,260 --> 00:00:04,780 I love being the tampon. 3 00:00:05,580 --> 00:00:06,820 It's a gift from God. 4 00:00:08,020 --> 00:00:09,020 Don't you agree? 5 00:00:10,200 --> 00:00:16,840 Martin Shkreli, the hedge fund manager, investor, and pharmaceutical CEO, is a 6 00:00:16,840 --> 00:00:22,080 social media mainstay, exhibiting a questionable social conscience. 7 00:00:22,340 --> 00:00:25,420 He raises the price of this drug, which benefits probably the most empathetic 8 00:00:25,420 --> 00:00:26,480 group of people on the planet. 9 00:00:27,040 --> 00:00:28,780 Babies, pregnant women, and AIDS patients. 10 00:00:30,060 --> 00:00:36,600 By jacking the prize of a life -saving drug 5 ,000%, he earns the title of the 11 00:00:36,600 --> 00:00:38,140 most hated man in America. 12 00:00:38,500 --> 00:00:44,060 But a quick look at his posts on social media reveals that's fine by him. 13 00:00:44,940 --> 00:00:46,820 Are you going to change the price? 14 00:00:47,020 --> 00:00:50,180 No. He wants Martin Shkreli to be a household name. 15 00:00:50,380 --> 00:00:54,240 And I'm not sure that he minds that it's infamy, that it's a notorious name. 16 00:00:55,170 --> 00:01:00,190 Despite being indicted on several counts of securities fraud, this Internet 17 00:01:00,190 --> 00:01:03,770 troll doesn't think he has to answer to anybody. 18 00:01:04,230 --> 00:01:06,030 No questions from CNBC. I'm sorry. 19 00:01:06,830 --> 00:01:11,010 Until one Facebook post gets the attention of the Secret Service. 20 00:01:12,570 --> 00:01:15,490 Oh, you done went too far now, you stupid prick. 21 00:01:15,810 --> 00:01:18,010 Can Martin Shkreli learn his lesson? 22 00:01:18,470 --> 00:01:22,450 Or is the pharma bro hooked on his own hype? 23 00:01:22,970 --> 00:01:23,970 New York City. 24 00:01:24,640 --> 00:01:29,880 eight million stories mine's the best 25 00:01:29,880 --> 00:01:51,480 in 26 00:01:51,480 --> 00:01:53,020 the summer of 2015 27 00:01:54,600 --> 00:01:59,260 Legendary hip -hop group the Wu -Tang Clan is in the midst of the 28 00:01:59,260 --> 00:02:03,840 private sale of its album Once Upon a Time in Shaolin. 29 00:02:05,800 --> 00:02:10,979 To hip -hop personality and self -professed Wu -Tang fanatic Charlamagne 30 00:02:10,979 --> 00:02:13,560 God, the sale is a statement. 31 00:02:13,920 --> 00:02:16,320 It was actually to bring the value back to music. 32 00:02:16,760 --> 00:02:20,580 That's what they wanted to do. They wanted to create this singular piece of 33 00:02:21,020 --> 00:02:23,000 This has been called the Nickel Silver. 34 00:02:24,300 --> 00:02:29,320 we decided, hey, there's a world -famous logo of the Wu -Tang Clan within this 35 00:02:29,320 --> 00:02:32,080 beautiful pattern, treated as an art piece, which it is. 36 00:02:33,920 --> 00:02:38,660 The Wu -Tang Clan is protesting the rampant piracy in the music industry. 37 00:02:39,180 --> 00:02:42,900 If the public isn't willing to pay for their music, they won't make it 38 00:02:42,900 --> 00:02:43,900 to them. 39 00:02:44,620 --> 00:02:49,060 The terms of the agreement say that the buyer cannot share the album with 40 00:02:49,060 --> 00:02:50,060 anyone. 41 00:02:50,380 --> 00:02:53,440 Lifelong fans will conceivably never get to hear it. 42 00:02:53,960 --> 00:02:57,500 This won't be an album for the people, but for the elite. 43 00:02:57,840 --> 00:03:01,600 More specifically, one singular member of the elite. 44 00:03:02,700 --> 00:03:06,700 But even given that fact, there's one thing the Wu -Tang Clan couldn't have 45 00:03:06,700 --> 00:03:07,700 anticipated. 46 00:03:09,600 --> 00:03:13,400 The buyer is going to be the most hated man in America. 47 00:03:15,180 --> 00:03:18,660 I don't think Wu -Tang should be looked upon negatively for selling that album 48 00:03:18,660 --> 00:03:23,240 to Martin. Like, they sold him an album. Like, we didn't know he was a douche. 49 00:03:24,910 --> 00:03:26,670 Some people saw signs. 50 00:03:29,550 --> 00:03:34,910 In the early 2000s, Caroline Stewart is a Wall Street stock analyst who 51 00:03:34,910 --> 00:03:37,750 publishes recommendations for biotech stocks. 52 00:03:38,530 --> 00:03:44,190 And one morning, after advising against the stock Shkreli is high on, she says 53 00:03:44,190 --> 00:03:48,890 he ambushes her with an unsolicited and insulting phone call. 54 00:03:50,990 --> 00:03:55,670 There are times when you get nasty phone calls from people who hold the opposite 55 00:03:55,670 --> 00:03:57,990 viewpoint as you on any particular stock. 56 00:03:59,590 --> 00:04:02,990 But he's the only instance I could think of where it was actually meant to 57 00:04:02,990 --> 00:04:08,370 ridicule. And it quickly devolved into sort of a mockery of me where he started 58 00:04:08,370 --> 00:04:13,730 to ask questions that were obviously meant to just make me feel stupid. 59 00:04:15,450 --> 00:04:20,050 But years later, they meet again when Shkreli is running a hedge fund of his 60 00:04:20,050 --> 00:04:21,050 own. 61 00:04:21,899 --> 00:04:25,000 And this time, things are much more cordial. 62 00:04:25,940 --> 00:04:28,580 He offered to take me on as a consultant. 63 00:04:29,160 --> 00:04:33,560 And I was, again, extremely grateful, and I jumped at the chance. 64 00:04:34,200 --> 00:04:40,660 The company is called MSMB Capital, a hedge fund that specializes in 65 00:04:40,660 --> 00:04:42,880 biotech and pharmaceutical investing. 66 00:04:44,100 --> 00:04:48,720 It's a red -hot industry on Wall Street, and one Stewart knows well. 67 00:04:49,420 --> 00:04:51,460 She works for the fund as an analyst. 68 00:04:51,800 --> 00:04:57,140 But beyond researching stocks, she doesn't know much about the inner 69 00:04:57,140 --> 00:04:58,140 the company. 70 00:04:58,980 --> 00:05:02,880 It was very strange because as far as I could tell, there was no audited 71 00:05:02,880 --> 00:05:03,880 performance record. 72 00:05:04,100 --> 00:05:09,060 And I didn't know how much he had in assets under management. 73 00:05:10,060 --> 00:05:14,080 He was very secretive. He was very, very secretive about things. 74 00:05:16,669 --> 00:05:20,370 Well, ostensibly, MSNBCapital was supposed to be a hedge fund, a true 75 00:05:20,370 --> 00:05:24,130 fund. It's supposed to have equal amounts of short and long positions, so 76 00:05:24,130 --> 00:05:27,490 minimizes the risk to investors of a substantial loss. 77 00:05:28,870 --> 00:05:30,230 That's how he pitched it to investors. 78 00:05:32,610 --> 00:05:38,310 Shkreli tells investors that in the bustle of high -powered investment 79 00:05:38,310 --> 00:05:42,590 the heart of the world's biggest financial market, he will work harder 80 00:05:42,590 --> 00:05:44,510 smarter than everyone else. 81 00:05:44,920 --> 00:05:49,680 There were maybe four of us crammed into this little room, and it was intense. 82 00:05:50,300 --> 00:05:54,600 It was by far the most intense work experience I'd ever had. 83 00:05:56,160 --> 00:06:02,320 It seems to be paying off as investors begin to get behind the fund and its 84 00:06:02,320 --> 00:06:04,340 leader. He made connections with people. 85 00:06:04,780 --> 00:06:08,620 He made connections with one person, that person introduced another person, 86 00:06:08,620 --> 00:06:09,940 he cultivated these relationships. 87 00:06:10,750 --> 00:06:14,290 among investors, people that ended up being willing to put capital into his 88 00:06:14,290 --> 00:06:15,290 hedge fund. 89 00:06:16,130 --> 00:06:18,930 People on Wall Street are there for a reason. It's because they want to make 90 00:06:18,930 --> 00:06:23,250 money, and money is very important to them. And so everybody's kind of 91 00:06:23,250 --> 00:06:27,810 by it, and everybody wants to, you know, jump on that coattail. 92 00:06:29,410 --> 00:06:33,210 But one day, that coattail drags them into the mud. 93 00:06:35,310 --> 00:06:39,690 He took a very aggressive short position on a stock called the Rexachin. 94 00:06:40,190 --> 00:06:46,410 And that stock trade failed spectacularly. It blew up, and it lost 95 00:06:46,410 --> 00:06:51,310 all of MS andB's, or effectively all of MS andB Capital's money. 96 00:06:52,590 --> 00:06:53,790 So he was broke. 97 00:06:54,990 --> 00:07:00,590 According to Stewart, Shkreli keeps the destruction of the fund to himself, even 98 00:07:00,590 --> 00:07:01,770 hiding it from employees. 99 00:07:03,230 --> 00:07:09,290 But for days afterwards, Stewart can see Shkreli's roaring fire extinguished. 100 00:07:10,540 --> 00:07:12,280 He seemed very deflated. 101 00:07:12,920 --> 00:07:15,500 And, you know, the lights in the office were off. 102 00:07:15,740 --> 00:07:18,120 He was slumped in his chair. He had his hoodie up. 103 00:07:18,640 --> 00:07:24,500 And I felt bad for him because this is a normally very hyper person, if you 104 00:07:24,500 --> 00:07:30,960 will, and very aggressive, ambitious, who suddenly, you know, was more like a 105 00:07:30,960 --> 00:07:32,780 dog with his tail between its legs. 106 00:07:34,380 --> 00:07:38,060 And it was sometime a little later that he told me that. 107 00:07:38,760 --> 00:07:42,440 The fund had blown up, and then he told me that he owed Bank of America Merrill 108 00:07:42,440 --> 00:07:43,440 Lynch $10 million. 109 00:07:46,560 --> 00:07:50,900 According to the government, Shkreli never reveals that detail to investors. 110 00:07:51,280 --> 00:07:54,380 In fact, he'd been keeping a lot from them. 111 00:07:55,720 --> 00:08:00,160 There's no evidence that at any point he was trading in the manner that he was 112 00:08:00,160 --> 00:08:03,360 describing to the investors. There's no evidence that he had the amount of 113 00:08:03,360 --> 00:08:05,340 assets under management that he claimed to have. 114 00:08:05,600 --> 00:08:07,040 There's no evidence. 115 00:08:07,600 --> 00:08:12,180 that he performed well with their money, there is significant evidence that he 116 00:08:12,180 --> 00:08:14,500 quickly burned through their money that they pledged with him. 117 00:08:16,380 --> 00:08:20,920 But the government asserts that Shkreli continues to tell investors everything 118 00:08:20,920 --> 00:08:22,160 is doing great. 119 00:08:23,440 --> 00:08:24,920 He's smart and he keeps on going. 120 00:08:25,540 --> 00:08:30,700 He turns what's negative news and he puts a really positive spin on it and he 121 00:08:30,700 --> 00:08:31,700 keeps going. 122 00:08:32,080 --> 00:08:34,340 Within a few days, he had... 123 00:08:35,140 --> 00:08:37,400 come up with a survival plan. 124 00:08:39,020 --> 00:08:43,500 He starts this new hedge fund, MSNB Healthcare, and he follows the same 125 00:08:43,500 --> 00:08:44,740 that he did with MSNB Capital. 126 00:08:45,240 --> 00:08:51,400 He lures investors in with the promises of the fund's going to be fully hedged, 127 00:08:51,420 --> 00:08:53,900 it's going to behave in the proper manner, it has this auditor, it has this 128 00:08:53,900 --> 00:08:57,260 firm that keeps an eye on things, and he has this great track record. 129 00:08:58,400 --> 00:08:59,400 And none of that was true. 130 00:09:01,280 --> 00:09:04,540 But MSMB Healthcare is only the beginning. 131 00:09:04,960 --> 00:09:10,840 He brags, boasts, and smooth talks his way into getting investors to put money 132 00:09:10,840 --> 00:09:12,660 into a much more ambitious venture. 133 00:09:13,760 --> 00:09:18,380 A new drug company of his own creation, Retrophin. 134 00:09:20,240 --> 00:09:24,480 Instead of like the classic scenario of a guy in his laboratory slaving away for 135 00:09:24,480 --> 00:09:26,870 years to... create the drug that's going to save people. 136 00:09:27,070 --> 00:09:30,930 Martin is looking for kind of a market opportunity, a financial market 137 00:09:30,930 --> 00:09:33,790 opportunity, in much the same way that he claimed to be looking for market 138 00:09:33,790 --> 00:09:35,670 opportunities in buying pharmaceutical stock. 139 00:09:36,010 --> 00:09:40,670 The difference here, instead of buying a stock in equity, he's buying an actual 140 00:09:40,670 --> 00:09:42,010 asset, a drug. 141 00:09:42,860 --> 00:09:47,220 There are virtual biotech companies, and a lot of companies get formed because 142 00:09:47,220 --> 00:09:53,740 you have an entrepreneur who is able to scour the universe for maybe drugs that 143 00:09:53,740 --> 00:09:57,400 have failed in the past, drugs that were put aside from pharma companies because 144 00:09:57,400 --> 00:09:59,040 they weren't going to be profitable enough. 145 00:09:59,400 --> 00:10:03,380 You can even go to academia, right, where a lot of the work is done and say, 146 00:10:03,420 --> 00:10:06,840 this looks like a promising compound. I'll in -license it from you, and I'll 147 00:10:06,840 --> 00:10:07,840 develop it. 148 00:10:08,940 --> 00:10:13,080 But Shkreli needs money to buy the licenses for these drugs. 149 00:10:13,440 --> 00:10:16,580 And he owes investors and banks millions of dollars. 150 00:10:16,900 --> 00:10:23,360 He has a big hole to fill and knows one way to fill it. So immediately after he 151 00:10:23,360 --> 00:10:26,900 formed the company, of course, he's on a mad dash to collect money. 152 00:10:28,140 --> 00:10:32,080 Shkreli never tells investors that MSMB Capital is broke. 153 00:10:32,700 --> 00:10:35,920 But he suddenly announces that he is closing the hedge fund. 154 00:10:36,410 --> 00:10:40,910 despite its purported success to focus entirely on retrophin. 155 00:10:42,330 --> 00:10:45,010 Which surprised just about every investor. It's like, well, why? 156 00:10:45,370 --> 00:10:47,410 Everything is going great. Why would you close this up? 157 00:10:47,770 --> 00:10:51,150 He said you can either take the money in cash and get it within a month or so, 158 00:10:51,230 --> 00:10:54,670 or you can get the equivalent amount in retrofit stock. 159 00:10:55,570 --> 00:10:59,350 He was hoping, clearly, that people would take the retrofit stock because 160 00:10:59,350 --> 00:11:02,830 delays having to pay these investors to make them whole. 161 00:11:03,560 --> 00:11:07,500 This was akin to, you know, a performer who's got a bunch of plates spinning on 162 00:11:07,500 --> 00:11:09,460 sticks, and he's keeping the plates spinning. 163 00:11:10,760 --> 00:11:15,360 Most investors ask to take the cash from MSNB Capital. 164 00:11:15,700 --> 00:11:17,700 But Scrummy doesn't have the money. 165 00:11:17,960 --> 00:11:23,140 And many investors believe he simply ignores them and does whatever he wants. 166 00:11:25,320 --> 00:11:31,060 Martin, as smart as he is, is completely fiscally irresponsible. 167 00:11:33,770 --> 00:11:38,110 You know, as soon as he raised his money, I think he almost views it as 168 00:11:39,250 --> 00:11:44,010 I think that Martin knew full well that he was misrepresenting what he was doing 169 00:11:44,010 --> 00:11:45,010 with people's money. 170 00:11:45,070 --> 00:11:50,410 And I think that the history shows here, the evidence shows, that instead of 171 00:11:50,410 --> 00:11:54,810 doing kind of the grunt work of managing people's money on a daily basis in a 172 00:11:54,810 --> 00:11:58,950 way that he claims to be managed, that he's looking for a quick hit, a quick 173 00:11:58,950 --> 00:11:59,950 return. 174 00:12:01,100 --> 00:12:05,540 It doesn't appear that the Grandmaster of Wall Street is playing chess. 175 00:12:05,860 --> 00:12:08,060 He seems to be rolling the dice. 176 00:12:09,600 --> 00:12:11,900 But then a funny thing happens. 177 00:12:12,380 --> 00:12:14,460 His number comes up. 178 00:12:16,100 --> 00:12:22,980 When American Greed returns, Martin Shkreli becomes the face of rapacious 179 00:12:22,980 --> 00:12:27,380 drug pricing and has no problem letting everyone know it. 180 00:12:27,950 --> 00:12:31,930 Usually when you have that kind of negative attention, executives tend to 181 00:12:31,930 --> 00:12:34,450 quiet. He did the opposite of that. 182 00:12:47,930 --> 00:12:54,770 After MSMB Capital goes broke in 2011, Martin Shkreli looks to pursue 183 00:12:54,770 --> 00:12:56,490 a different business model. 184 00:12:58,190 --> 00:13:00,210 He's not going to bet on Wall Street. 185 00:13:00,450 --> 00:13:02,870 Wall Street is going to bet on him. 186 00:13:03,430 --> 00:13:08,810 His startup company, Retrophin, begins licensing relatively obscure 187 00:13:09,290 --> 00:13:13,950 And in a move that will later make him infamous, he raises their prices. 188 00:13:14,670 --> 00:13:17,230 It's just the medicine his company needs. 189 00:13:17,450 --> 00:13:20,470 And Retrophin returns enormous profits. 190 00:13:22,370 --> 00:13:27,720 But despite getting his bragging rights back, Things aren't so rosy within 191 00:13:27,720 --> 00:13:32,280 Retrophin, particularly from the perspective of its board of directors. 192 00:13:33,820 --> 00:13:38,800 He was still relatively young, and they saw him as not having the skill set 193 00:13:38,800 --> 00:13:43,160 necessary to be the CEO of a publicly traded company that was looking to grow. 194 00:13:43,360 --> 00:13:47,020 They saw him as more of kind of an innovator, a creator, an idea business 195 00:13:47,020 --> 00:13:48,100 strategy guy. 196 00:13:48,900 --> 00:13:50,900 And Martin did not take that well at all. 197 00:13:52,940 --> 00:13:56,660 Shkreli stands up to the board of directors, and they don't flinch. 198 00:13:58,080 --> 00:13:59,980 He's fired from the company. 199 00:14:01,980 --> 00:14:07,560 But once again, Martin is Martin. The sun will rise another day. 200 00:14:07,800 --> 00:14:12,860 He creates another company in Retrophin's image called Turing 201 00:14:12,860 --> 00:14:17,120 And before long, he becomes famous, but for troubling reasons. 202 00:14:18,820 --> 00:14:20,620 Martin Shkreli bought... 203 00:14:20,910 --> 00:14:26,850 a drug that was decades old. It was used for very rare but serious infections 204 00:14:26,850 --> 00:14:32,730 that affect really vulnerable people, HIV patients, cancer patients, pregnant 205 00:14:32,730 --> 00:14:37,770 women, people with suppressed immune systems. And he raised the price by 5 206 00:14:37,770 --> 00:14:38,930 % overnight. 207 00:14:40,990 --> 00:14:45,990 Dr. Carlos Del Rio is a board member of the HIV Medicine Association. 208 00:14:47,050 --> 00:14:53,410 And he says Daraprim is a drug that treats a disease called toxoplasmosis, 209 00:14:53,410 --> 00:14:54,410 can affect anyone. 210 00:14:54,930 --> 00:14:59,850 But in patients with immune system deficiencies, it can be extremely 211 00:15:00,130 --> 00:15:01,250 even deadly. 212 00:15:01,930 --> 00:15:05,310 They'll get an absence in the brain. That's called a toxoplasmosis 213 00:15:05,590 --> 00:15:08,570 They can get a meningitis. They can get an infection in their heart. 214 00:15:09,420 --> 00:15:13,900 In a pregnant woman, toxoplasmosis can lead to fetal loss and can lead to, if 215 00:15:13,900 --> 00:15:17,100 not a loss, a severely malformed or diseased baby. 216 00:15:18,660 --> 00:15:24,120 Ever since 1953, Daraprim has been an effective treatment for toxoplasmosis. 217 00:15:24,460 --> 00:15:30,760 But when Shkreli raises the price of a single pill from $13 .50 to 218 00:15:30,760 --> 00:15:32,240 $750, 219 00:15:33,340 --> 00:15:36,340 the treatment becomes far less available. 220 00:15:37,670 --> 00:15:40,370 When I would call my hospital and say, I need Daraprim, and they said, well, you 221 00:15:40,370 --> 00:15:43,650 know, we don't have it because in order to stock the medication, it used to cost 222 00:15:43,650 --> 00:15:47,850 us, you know, $3 ,000 to stock the medication. Now it's costing us a 223 00:15:47,850 --> 00:15:48,850 dollars. 224 00:15:49,370 --> 00:15:52,150 What that means to a patient is, you know, somebody comes in with toxic 225 00:15:52,150 --> 00:15:56,130 lesmosis, they're in the ICU, they have a seizure, and it may take the hospital 226 00:15:56,130 --> 00:15:59,050 two to three days to get the medication that you need to give the patient right 227 00:15:59,050 --> 00:16:00,050 away. 228 00:16:00,830 --> 00:16:05,430 The HIV Medicine Association writes an open letter about the price hike. 229 00:16:05,930 --> 00:16:08,170 and it soon gains national attention. 230 00:16:08,810 --> 00:16:12,350 The New York Times has a story about this price hike, and instead of issuing 231 00:16:12,350 --> 00:16:15,910 this kind of like bland statement, you know, that business people often do in 232 00:16:15,910 --> 00:16:19,850 cases like this, Martin gives an interview, and he's unapologetic about 233 00:16:19,850 --> 00:16:20,849 price hike. 234 00:16:20,850 --> 00:16:23,950 And Martin Shkreli joins us now from the NASDAQ. He's the CEO of Turing 235 00:16:23,950 --> 00:16:26,530 Pharmaceuticals. Martin, thank you for joining us. Thanks for having me. 236 00:16:26,890 --> 00:16:31,790 Martin Shkreli embraced his role in the limelight and seemed to do everything he 237 00:16:31,790 --> 00:16:32,790 could to stay there. 238 00:16:33,280 --> 00:16:37,020 At this price, Airprim is still actually on the low end of what orphan drugs 239 00:16:37,020 --> 00:16:39,880 cost, and we're certainly not the first company to raise drug prices. 240 00:16:40,200 --> 00:16:46,160 What's striking about Martin is that when he's in trouble like this, and in a 241 00:16:46,160 --> 00:16:49,060 situation which will lead many people to hunker down and kind of like hope it 242 00:16:49,060 --> 00:16:53,100 all blows over, he sticks his neck out even further and dares people to cut it 243 00:16:53,100 --> 00:16:54,100 off. 244 00:16:54,260 --> 00:16:59,600 On camera, in front of the entire world, Shkreli doesn't apologize for the price 245 00:16:59,600 --> 00:17:02,020 hike. He makes his case for it. 246 00:17:03,150 --> 00:17:06,890 So, in essence, we're taking the revenue from Daraprim and trying to come up 247 00:17:06,890 --> 00:17:08,930 with a better, safer, more effective version of it. 248 00:17:10,650 --> 00:17:16,630 According to Dr. Del Rio and dozens of advocacy groups, Shkreli's case is bad 249 00:17:16,630 --> 00:17:17,630 medicine. 250 00:17:18,310 --> 00:17:23,630 It's an argument that simply holds no water, and there's no need for other 251 00:17:23,630 --> 00:17:25,310 for toxoplasmosis. 252 00:17:26,960 --> 00:17:33,600 In September of 2016, the issue gains the attention of the two people in the 253 00:17:33,600 --> 00:17:35,280 center of the national spotlight. 254 00:17:35,600 --> 00:17:40,940 With this young guy, raise the price to a level that's absolutely ridiculous, 255 00:17:41,120 --> 00:17:43,880 and he looks like a spoiled brat to me. You want to know the truth? 256 00:17:44,100 --> 00:17:45,880 He looks like a spoiled brat. 257 00:17:46,200 --> 00:17:47,980 There's no excuse. Look. 258 00:17:49,150 --> 00:17:52,850 We want companies to get a fair return. That's the way our system works. There's 259 00:17:52,850 --> 00:17:58,430 no excuse from going from $13 .50 to $750 for one pill. 260 00:17:58,930 --> 00:18:04,310 Shkreli argues that his little drug Daraprim was such a tiny part of the 261 00:18:04,310 --> 00:18:08,090 care world that it wouldn't have an impact either on health care costs or 262 00:18:08,090 --> 00:18:11,670 directly on patients because he said that insurance should cover it. 263 00:18:12,590 --> 00:18:15,790 Dr. Del Rio says Shkreli isn't exactly wrong. 264 00:18:16,540 --> 00:18:18,540 But he's not on the right side either. 265 00:18:20,820 --> 00:18:25,220 In the big scheme of things, this is not the cause that our health care is going 266 00:18:25,220 --> 00:18:28,740 broke. But I think it's not the cause, but it's a symptom of what the problems 267 00:18:28,740 --> 00:18:29,740 are. 268 00:18:30,240 --> 00:18:36,120 I would say that nothing that is being done is illegal, but I think it's 269 00:18:36,120 --> 00:18:37,120 immoral. 270 00:18:37,400 --> 00:18:39,340 And yes, I would qualify it as greedy. 271 00:18:41,700 --> 00:18:45,320 The United States Congress sees it the same way. 272 00:18:47,440 --> 00:18:53,260 When American Greed returns, Martin Shkreli seems willing to dish it out as 273 00:18:53,260 --> 00:18:57,760 as he takes it until Capitol Hill gives him a taste of his own medicine. 274 00:18:59,300 --> 00:19:05,260 The way I see it, you can go down in history as the poster boy for greedy 275 00:19:05,260 --> 00:19:08,960 company executives, or you can change the system. 276 00:19:09,780 --> 00:19:10,960 Yeah, you. 277 00:19:22,480 --> 00:19:26,840 He is a brash self -promoter who's called himself the world's most eligible 278 00:19:26,840 --> 00:19:31,860 bachelor, but this morning he was in handcuffs, accused of duping investors 279 00:19:31,860 --> 00:19:32,860 of millions of dollars. 280 00:19:33,600 --> 00:19:40,280 On December 17, 2015, Martin Shkreli is arrested and indicted on eight 281 00:19:40,280 --> 00:19:45,240 criminal counts of securities fraud by the Department of Justice for his time 282 00:19:45,240 --> 00:19:49,240 with MSNB Capital and his subsequent dealings. 283 00:19:50,770 --> 00:19:54,250 Clearly, the charges aren't related to raising the price of Daraprim. 284 00:19:54,490 --> 00:19:57,090 But that doesn't mean he's off the hook for it. 285 00:19:58,290 --> 00:20:03,730 Another branch of government wants answers for that. In February 2016, 286 00:20:04,530 --> 00:20:09,470 the U .S. Congress brings him forward to testify about rapacious drug pricing. 287 00:20:09,930 --> 00:20:13,790 And the outspoken CEO is suddenly silent. 288 00:20:15,750 --> 00:20:17,810 What do you say to that signal? 289 00:20:18,590 --> 00:20:25,190 pregnant woman who might have AIDS, no income, and she needs 290 00:20:25,190 --> 00:20:26,750 Daraprim in order to survive. 291 00:20:27,170 --> 00:20:32,010 What do you say to her when she has to make that choice? What do you say to 292 00:20:32,310 --> 00:20:36,010 On the advice of counsel, I invoke my Fifth Amendment privilege against self 293 00:20:36,010 --> 00:20:38,610 -incrimination and respectfully decline to answer your question. 294 00:20:39,990 --> 00:20:41,810 Do you think you've done anything wrong? 295 00:20:42,830 --> 00:20:47,450 On the advice of counsel, I invoke my Fifth Amendment privilege. 296 00:20:48,560 --> 00:20:52,600 against self -incrimination, and respectfully declined to answer your 297 00:20:53,120 --> 00:20:56,180 He gets dragged before Congress to testify, and he's contemptuous. 298 00:20:56,940 --> 00:21:01,380 He's rolling his eyes at the Congressman. Instead of being 299 00:21:01,380 --> 00:21:04,300 taunting the people that are criticizing him. 300 00:21:05,180 --> 00:21:10,880 You can look away if you like, but I wish you could see the faces of people, 301 00:21:10,880 --> 00:21:11,880 matter what Ms. 302 00:21:12,000 --> 00:21:16,080 Redlap says, who cannot get the drugs. 303 00:21:16,560 --> 00:21:20,880 Did they need him, by the way? And then when he was finally excused because he 304 00:21:20,880 --> 00:21:24,660 kept telling them he wasn't going to answer their question, he immediately 305 00:21:24,660 --> 00:21:27,180 tweeted that the congressmen are imbeciles. 306 00:21:28,820 --> 00:21:33,220 Despite being in the crosshairs of the U .S. government, Shkreli apparently 307 00:21:33,220 --> 00:21:37,060 believes he has more important feuds to rectify. 308 00:21:38,280 --> 00:21:39,280 Well, 309 00:21:39,600 --> 00:21:44,160 talking today for Friday, January 29th, goes to Martin Shkreli. Do you know who 310 00:21:44,160 --> 00:21:45,160 that is? Yes. 311 00:21:46,080 --> 00:21:48,960 Donkey of the Day is a segment that I do on my show, The Breakfast Club. I give 312 00:21:48,960 --> 00:21:50,440 people the credit they deserve for being stupid. 313 00:21:51,000 --> 00:21:55,220 And I mean, I think history has shown that nobody deserves a lot more credit 314 00:21:55,220 --> 00:21:56,420 being stupid than Martin Shkreli. 315 00:21:58,160 --> 00:22:03,260 After buying the single copy of the Wu -Tang's album Once Upon a Time in 316 00:22:03,260 --> 00:22:10,020 for reportedly more than $2 million, a TMZ interview with Wu -Tang's 317 00:22:10,020 --> 00:22:15,700 ghostface killer turns Shkreli from an avid supporter to a bitter enemy. 318 00:22:15,980 --> 00:22:19,460 I gotta ask you guys, man. You guys know that guy bought you guys this $2 319 00:22:19,460 --> 00:22:21,700 million, your CD for $2 million at the auction. 320 00:22:21,940 --> 00:22:23,100 Yeah, that shit. Yeah, 321 00:22:23,840 --> 00:22:26,720 yeah, yeah. You know what I mean? 322 00:22:27,020 --> 00:22:28,180 Martin Shkreli. 323 00:22:28,980 --> 00:22:33,420 Shkreli is really sensitive about any perceived slights. 324 00:22:33,700 --> 00:22:39,720 That wasn't a perceived slight. That was an obvious slight. But, yeah, he seemed 325 00:22:39,720 --> 00:22:41,780 to jump at the opportunity to seem to be threatening. 326 00:22:42,600 --> 00:22:44,880 ghost -faced killer in a video back. 327 00:22:45,180 --> 00:22:50,080 And I think TMZ ran with all of it, which probably thrilled him. 328 00:22:51,160 --> 00:22:53,960 Dennis, I'm going to call you by your government name. 329 00:22:54,380 --> 00:22:55,780 You're not a ghost -faced killer. 330 00:22:56,080 --> 00:23:00,440 I'm sorry. It started with Martin getting online and just talking 331 00:23:00,440 --> 00:23:04,480 know what I'm saying, with some guys. He rented some goons, and he had these 332 00:23:04,480 --> 00:23:07,600 goons standing behind him in a video, and he was just talking real greasy. 333 00:23:08,140 --> 00:23:11,060 You know, at the end of the day, I'm very sorry for you. 334 00:23:11,340 --> 00:23:12,340 You're an old man. 335 00:23:12,480 --> 00:23:15,540 You're an old man that's lost his relevance, and you're trying to reclaim 336 00:23:15,540 --> 00:23:16,800 spotlight from my spotlight. 337 00:23:17,300 --> 00:23:18,480 That's not going to work, Ghost. 338 00:23:19,020 --> 00:23:20,020 Dennis. 339 00:23:20,780 --> 00:23:23,080 Ghost -based killer isn't one to back down. 340 00:23:23,700 --> 00:23:28,800 He comes back with a video posted on his website, dynamitestick .com. 341 00:23:30,040 --> 00:23:31,019 Hey, yo, man. 342 00:23:31,020 --> 00:23:32,140 You hilarious, man. 343 00:23:32,460 --> 00:23:34,680 You must be on Ritalin or something, man. 344 00:23:34,900 --> 00:23:37,940 You know what I mean? Take a shot, man. It's like, yo, you a fake -ass super 345 00:23:37,940 --> 00:23:38,940 villain, man. 346 00:23:39,540 --> 00:23:42,200 Ghostface is just entertaining the people. That's not even really energy 347 00:23:42,200 --> 00:23:43,460 Martin. That's energy for us. 348 00:23:43,780 --> 00:23:46,100 You know what I'm saying? And I appreciate that. 349 00:23:46,540 --> 00:23:49,600 This is the guy right here that planned on challenging me. 350 00:23:50,040 --> 00:23:51,840 The man with the 12 -year -old body. 351 00:23:52,820 --> 00:23:53,820 This is who he be. 352 00:23:54,580 --> 00:23:58,300 His name is Shkreli right there. When y 'all see him, you know what I mean? 353 00:23:58,700 --> 00:23:59,880 Oh, he's having a ball. 354 00:24:00,120 --> 00:24:03,780 Pee -wee Shkreli? And the fact that he looks so much like Pee -wee Herman. 355 00:24:04,300 --> 00:24:07,980 He really does look like Pee -wee Herman in the face. A lot. 356 00:24:10,570 --> 00:24:12,150 You're watching The Breakfast Club. 357 00:24:12,950 --> 00:24:18,850 After Charlemagne the God makes him donkey of the day, Shkreli asks to come 358 00:24:18,850 --> 00:24:20,370 the show for a face -to -face. 359 00:24:20,730 --> 00:24:23,310 The Breakfast Club gladly obliges. 360 00:24:23,810 --> 00:24:26,870 He came in here and tried to shake my hand. I said, nope, I can't shake your 361 00:24:26,870 --> 00:24:30,650 hand. I need to know what you're all about first. So first question, are you 362 00:24:30,650 --> 00:24:31,750 privileged, entitled prick? 363 00:24:32,190 --> 00:24:33,190 No. 364 00:24:33,350 --> 00:24:35,670 Nah, I didn't shake his hand because I knew he was a prick. 365 00:24:36,010 --> 00:24:41,090 I mean, I just knew he was a prick from what I saw, you know, in interviews and, 366 00:24:41,110 --> 00:24:45,250 you know, what I read in the news. And, you know, I just knew he wasn't my type 367 00:24:45,250 --> 00:24:47,250 of person. All right. And Ghostface is going to smack. 368 00:24:47,550 --> 00:24:50,350 We'll see, man. Bring it. I wish he would. All right. 369 00:24:50,630 --> 00:24:53,230 The leader of the douche tank clan. 370 00:24:54,510 --> 00:25:01,110 In the meantime, while awaiting his tryout on eight felony counts, 371 00:25:01,390 --> 00:25:02,970 Shkreli doesn't shy away. 372 00:25:03,680 --> 00:25:08,580 He goes all in on social media, challenging friends and foes alike. 373 00:25:10,320 --> 00:25:12,780 New York City, 8 million stories. 374 00:25:16,020 --> 00:25:17,240 And mine's the best. 375 00:25:19,360 --> 00:25:24,200 Two things I have that you don't. Number one and number two. 376 00:25:25,360 --> 00:25:31,100 If anyone dared slap me, oh Lord, I wish they would. 377 00:25:32,490 --> 00:25:39,270 And there is seemingly no end to who he'll argue 378 00:25:39,270 --> 00:25:40,270 with online. 379 00:25:43,350 --> 00:25:44,130 I 380 00:25:44,130 --> 00:25:51,670 see 381 00:25:51,670 --> 00:25:56,490 your foolish face here. 382 00:25:58,050 --> 00:26:00,250 You need to lose weight. 383 00:26:01,930 --> 00:26:04,330 But even the Internet has lived. 384 00:26:07,290 --> 00:26:14,230 When American Greed returns, the content trolling goes too far. And even 385 00:26:14,230 --> 00:26:16,470 Twitter says, time's up. 386 00:26:25,790 --> 00:26:27,090 I'm having fun here. 387 00:26:28,490 --> 00:26:32,770 Through all his trolling and his reputation from raising the price of a 388 00:26:32,770 --> 00:26:39,730 -saving drug, Martin Shkreli soon becomes known as the Pharma Bro and the 389 00:26:39,730 --> 00:26:41,330 most hated man in America. 390 00:26:43,010 --> 00:26:47,250 If he wants to be a household name, mission accomplished. 391 00:26:48,430 --> 00:26:51,190 And there's also that musical about him. 392 00:26:51,910 --> 00:26:53,570 I probably shouldn't say the name. 393 00:26:54,770 --> 00:26:57,830 It's called Pharma Bro and American Doucheable. 394 00:26:58,330 --> 00:27:02,170 A great American hero of our time. 395 00:27:03,890 --> 00:27:09,310 A moral person, a Samaritan, a fine upstanding citizen. 396 00:27:09,910 --> 00:27:13,190 It's Martin Shrelby. Martin Shrelby. 397 00:27:13,390 --> 00:27:16,810 Martin Shrelby. Who's made the American dream. 398 00:27:19,950 --> 00:27:23,490 He went to one of the shows, and soon afterwards he tweets at one of the 399 00:27:23,490 --> 00:27:25,290 creators of the play, and he said, 400 00:27:26,860 --> 00:27:29,740 Something to the effect, hurt your place sucked, too bad you're a liberal. 401 00:27:30,440 --> 00:27:32,080 So again, it's like classic Martin. 402 00:27:33,500 --> 00:27:38,620 Classic Martin is ever apparent in his constant confrontations with the media, 403 00:27:38,820 --> 00:27:41,320 which he gladly shares with the world. 404 00:27:43,100 --> 00:27:47,820 Dan Mangan himself makes an appearance on Shkreli's Facebook page. 405 00:27:48,500 --> 00:27:49,500 Hi, this is Dan. 406 00:27:50,140 --> 00:27:52,520 This is Jake. Hi, this is Martin Shkreli. 407 00:27:53,460 --> 00:27:55,040 Hi, Martin, how are you? Good. 408 00:27:55,630 --> 00:28:01,030 And he said, I'm ordering you not to call me, contact me or call my lawyer 409 00:28:01,030 --> 00:28:02,030 anymore. 410 00:28:02,870 --> 00:28:06,090 Because I don't want you talking to my attorney. 411 00:28:07,450 --> 00:28:11,110 He was basically gaming me or he was trying to game me because he's saying, 412 00:28:11,110 --> 00:28:13,990 know, I don't want to talk to you. I have no interest in talking to Dan 413 00:28:13,990 --> 00:28:17,530 from CNBC. How dare you call me? I have no interest at all in ordering you. But 414 00:28:17,530 --> 00:28:20,510 at the same time, he's recording this. It's all an ad for a lot of us. 415 00:28:20,970 --> 00:28:24,550 We don't respect you or your organization enough to ever give you our 416 00:28:24,550 --> 00:28:25,550 the story. 417 00:28:25,770 --> 00:28:27,470 The NBC is on our blacklist. 418 00:28:28,690 --> 00:28:29,690 Clearly. 419 00:28:31,290 --> 00:28:36,870 When American Greed requests an interview, he succinctly declines, 420 00:28:36,990 --> 00:28:43,490 It's a common attitude from Shkreli, 421 00:28:43,570 --> 00:28:47,550 but one interaction with the media goes too far. 422 00:28:48,970 --> 00:28:54,430 There was a journalist who had written a piece about Donald Trump gaslighting 423 00:28:54,430 --> 00:28:55,430 America. 424 00:28:55,690 --> 00:29:01,430 She caught Martin Shkreli's attention and he asked her to the inauguration, 425 00:29:01,450 --> 00:29:02,450 apparently. 426 00:29:02,750 --> 00:29:05,710 And I think she responded, I would rather eat my own organ. 427 00:29:06,600 --> 00:29:13,540 And then he started this sort of social media obsession with her, going so 428 00:29:13,540 --> 00:29:19,720 far as to Photoshop his face onto pictures of her and her husband or 429 00:29:20,060 --> 00:29:25,940 And, you know, she felt harassed and notified Twitter. And that led to him 430 00:29:25,940 --> 00:29:26,940 banned from Twitter. 431 00:29:28,200 --> 00:29:32,500 But free reign on Twitter isn't the only freedom Shkreli risks losing. 432 00:29:33,380 --> 00:29:35,600 He faces eight felony counts. 433 00:29:36,380 --> 00:29:38,100 Potential decades in jail. 434 00:29:39,100 --> 00:29:40,640 And the public that hates him. 435 00:29:43,460 --> 00:29:46,420 Can a jury possibly be impartial? 436 00:29:47,620 --> 00:29:51,780 And I'm sitting there and I'm looking at him and I'm saying, he looks familiar 437 00:29:51,780 --> 00:29:53,280 to me, he looks familiar to me. 438 00:29:53,520 --> 00:29:55,600 And I just can't place him. 439 00:29:56,280 --> 00:29:59,720 And then somewhere along the line it just clicked who he was. 440 00:30:02,080 --> 00:30:03,640 When American Greed returns. 441 00:30:04,670 --> 00:30:07,470 Potential jurors let their feelings be known. 442 00:30:08,190 --> 00:30:10,910 Can Martin Shkreli get a fair trial? 443 00:30:12,370 --> 00:30:16,370 They use very strong words. He's evil, he's naked. 444 00:30:16,750 --> 00:30:18,790 They have very negative feelings about that. 445 00:30:27,690 --> 00:30:32,070 After nearly a week of trying to seat a jury from a hostile public, 446 00:30:33,070 --> 00:30:37,770 Twelve impartial citizens and six alternates are finally selected to serve 447 00:30:37,770 --> 00:30:39,050 Martin Shkreli's jury. 448 00:30:39,790 --> 00:30:42,090 The government makes its case. 449 00:30:42,950 --> 00:30:48,110 The government's case really was that Martin Shkreli formed the hedge fund 450 00:30:48,110 --> 00:30:49,110 Capital. 451 00:30:49,150 --> 00:30:55,110 And he sort of, they say, hoodwinked people into investing with him, lost 452 00:30:55,110 --> 00:30:58,890 money, and then founded another hedge fund, MSMB Healthcare. 453 00:30:59,990 --> 00:31:04,170 did basically the same thing there, then founded a biotech company that he 454 00:31:04,170 --> 00:31:05,170 called Retrofin. 455 00:31:05,370 --> 00:31:10,570 And the whole idea was that he was funneling money from Retrofin to his 456 00:31:10,570 --> 00:31:12,430 fund investors because he had lost their money. 457 00:31:12,690 --> 00:31:16,470 The investors in this case were the most damning evidence, I think, because they 458 00:31:16,470 --> 00:31:20,310 said, he told me this, and this is what happened. He told me X, Y, and Z was 459 00:31:20,310 --> 00:31:21,870 going to happen. It was actually A, B, and C. 460 00:31:22,710 --> 00:31:25,430 That was very damning evidence. It was impossible to get over that. And what 461 00:31:25,430 --> 00:31:27,870 Brafman's argued is like, well, they're rich people. They should know better. 462 00:31:28,300 --> 00:31:30,180 And who cares, really? I mean, like, they got their money back. 463 00:31:32,280 --> 00:31:34,280 It's a crucial point for the defense. 464 00:31:35,220 --> 00:31:37,700 Retrophin becomes a wildly successful company. 465 00:31:38,360 --> 00:31:43,540 And investors, despite many not wanting to invest initially, make multiple times 466 00:31:43,540 --> 00:31:44,540 their investments. 467 00:31:45,960 --> 00:31:50,620 So defense attorney Benjamin Brafman argues, where's the harm? 468 00:31:52,300 --> 00:31:54,940 It's more an argument to the jury saying, hey, look, come on. 469 00:31:55,160 --> 00:31:57,520 What's going on here? Why would you bother convicting this guy? 470 00:31:58,190 --> 00:32:01,830 What Braffman wants jurors to believe, what Braffman suggests the public should 471 00:32:01,830 --> 00:32:06,550 believe, is that there's Martin Shkreli, kind of like the comic book figure, the 472 00:32:06,550 --> 00:32:07,610 pro -wrestling villain. 473 00:32:08,210 --> 00:32:12,630 And then there's Martin Shkreli, the brilliant, young, mathematical, 474 00:32:13,070 --> 00:32:17,910 scientific genius, who has nothing but altruistic impulsiveness. 475 00:32:18,730 --> 00:32:25,510 And don't pay attention to this kind of freaky, nasty troll over 476 00:32:25,510 --> 00:32:28,940 here. Pay attention to this really nice guy over here and believe what this guy 477 00:32:28,940 --> 00:32:32,320 says. Don't believe what this guy says. Or if he says anything, he's just 478 00:32:32,320 --> 00:32:33,320 kidding. He's just kidding. 479 00:32:35,740 --> 00:32:36,740 They're one person. 480 00:32:38,020 --> 00:32:43,040 In the meantime, even though he already has the U .S. government shining its 481 00:32:43,040 --> 00:32:47,620 spotlight on him, Shkreli doesn't stop bringing attention to himself. 482 00:32:48,420 --> 00:32:52,820 There were times when it seemed like Shkreli was tweeting from inside the 483 00:32:52,820 --> 00:32:53,820 courthouse. 484 00:32:54,030 --> 00:32:55,550 It was really bizarre. 485 00:32:55,790 --> 00:32:59,130 I don't cover a lot of court cases. I'm a pharmaceutical industry reporter, but 486 00:32:59,130 --> 00:33:01,730 I don't know that that kind of thing happens frequently. 487 00:33:02,750 --> 00:33:08,010 Martin is unusual in a whole bunch of ways, and he's particularly unusual for 488 00:33:08,010 --> 00:33:12,430 the fact that, you know, the one time when you would expect somebody like this 489 00:33:12,430 --> 00:33:15,770 to keep their mouth shut, to keep their head down, and to let their lawyer do 490 00:33:15,770 --> 00:33:18,010 their job, he does the opposite. 491 00:33:18,480 --> 00:33:22,260 He goes into a room, I've never seen anything like this before, where a 492 00:33:22,260 --> 00:33:25,540 defendant comes into a room and does an impromptu press conference with 493 00:33:25,540 --> 00:33:30,360 reporters. He came in there and commented on our coverage of the case, 494 00:33:30,360 --> 00:33:33,860 prosecution's approach. He insulted them and called them the junior varsity. 495 00:33:34,560 --> 00:33:38,420 Afterwards, we asked his attorney what he thought about the fact that Shkreli 496 00:33:38,420 --> 00:33:41,940 did that, and Martin leaned over and said, I can do whatever I want. 497 00:33:42,430 --> 00:33:45,450 How did you feel about Martin coming to talk to reporters today in the middle of 498 00:33:45,450 --> 00:33:49,130 the trial? I do whatever he wants. I was stunned that it happened, and I'm 499 00:33:49,130 --> 00:33:50,850 hoping he doesn't do it ever again. 500 00:33:51,610 --> 00:33:57,130 Nevertheless, the jury has to consider the facts of the case. And in the end, 501 00:33:57,130 --> 00:34:00,930 the case goes to jury deliberation, the verdict is uncertain. 502 00:34:01,930 --> 00:34:03,150 It was really unclear. 503 00:34:03,570 --> 00:34:05,450 You have no idea what's going on in the room. 504 00:34:05,710 --> 00:34:10,750 And this was a really complicated case with a lot of counts, eight counts to 505 00:34:10,750 --> 00:34:12,909 decide on, three interrelated schemes. 506 00:34:13,610 --> 00:34:17,710 So they had a lot to talk about. It was really impossible to tell. 507 00:34:18,350 --> 00:34:20,870 We debated a lot. We talked a lot. 508 00:34:21,550 --> 00:34:25,250 And, yeah, we took it very seriously. We took it seriously. 509 00:34:26,870 --> 00:34:28,610 I've been on several juries before. 510 00:34:29,170 --> 00:34:30,429 This was the most stress. 511 00:34:32,860 --> 00:34:39,060 When American Greed returns, Barton Shkreli's fate rests in 12 people's 512 00:34:40,500 --> 00:34:45,400 But to look at Shkreli's Facebook feed, the verdict is already in. 513 00:34:46,340 --> 00:34:47,780 The jury starts tomorrow. 514 00:34:48,179 --> 00:34:50,980 I give them about 20 minutes before they free the boy. 515 00:34:51,659 --> 00:34:52,719 Free the boy. 516 00:35:06,320 --> 00:35:07,760 In August 2017, 517 00:35:08,520 --> 00:35:14,460 Lois Pounds and 11 other jurors sit in a room to determine Martin Shkreli's 518 00:35:14,460 --> 00:35:15,460 fate. 519 00:35:15,880 --> 00:35:21,900 It's hard. It's hard. But that's what we are there for as jurors. 520 00:35:22,300 --> 00:35:28,240 And I would hope that if I'm in that situation, God forbid, one day, that I'd 521 00:35:28,240 --> 00:35:32,980 have somebody that was, you know, open -minded, you know, and took it 522 00:35:35,210 --> 00:35:40,750 After almost five days of deliberation and almost 40 hours of debate, the jury 523 00:35:40,750 --> 00:35:43,830 finds Skrelik guilty of three of eight counts. 524 00:35:45,970 --> 00:35:50,210 When he and his attorneys came out of the courthouse, they declared victory. 525 00:35:50,890 --> 00:35:54,050 We're, I think, delighted in many ways with this verdict. 526 00:35:54,550 --> 00:35:58,070 Count Devin was the government's... 527 00:35:58,800 --> 00:36:03,300 attempt to theorize that I robbed Peter to pay Paul, and the jury has spoken 528 00:36:03,300 --> 00:36:06,620 conclusively that Bertropin was not defrauded in this case. 529 00:36:07,220 --> 00:36:11,580 My investors made three to five times their money without any aid of any sort. 530 00:36:11,580 --> 00:36:16,240 According to Lois Pound, the charges he is convicted of are straightforward and 531 00:36:16,240 --> 00:36:22,360 basically relate to whether or not Shkreli lied or misled investors to 532 00:36:22,360 --> 00:36:23,360 them to invest. 533 00:36:23,960 --> 00:36:27,860 It was easy to see that if you're supposed to have an auditor and you 534 00:36:27,860 --> 00:36:30,680 an auditor and you present that, that's wrong. 535 00:36:31,060 --> 00:36:34,560 If you're supposed to have a fund administrator and you don't have that, 536 00:36:34,560 --> 00:36:40,960 wrong. If you provide full fund performance to your investors, that's 537 00:36:41,120 --> 00:36:42,120 And that's fraud. 538 00:36:42,380 --> 00:36:43,960 That's fairly easy to see. 539 00:36:45,200 --> 00:36:48,840 But Pounds believes the other charges are less clear -cut. 540 00:36:49,840 --> 00:36:54,860 She believes Shkreli had no intent to take investors' or Retrofin's money. 541 00:36:55,460 --> 00:37:02,120 I think one juror said that his intent for Retrofin was never to cause, 542 00:37:02,220 --> 00:37:03,800 you know, Retrofin to lose money. 543 00:37:04,340 --> 00:37:07,680 And I think the term used by that individual was that was his baby. 544 00:37:08,140 --> 00:37:10,220 He wanted to make Retrofin successful. 545 00:37:10,600 --> 00:37:13,480 If you want a company to be successful, the last thing you're going to do is 546 00:37:13,480 --> 00:37:14,660 cause it to lose money. 547 00:37:15,460 --> 00:37:17,620 This was a witch hunt of epic proportions. 548 00:37:18,570 --> 00:37:22,450 Maybe they found one or two broomsticks, but at the end of the day, we've been 549 00:37:22,450 --> 00:37:26,230 acquitted of the most important charges in the case, and I'm delighted to report 550 00:37:26,230 --> 00:37:33,050 that. Once again, Martin Scarelli seems to believe he's escaped unscathed. 551 00:37:33,150 --> 00:37:37,430 Immediately after he returned home, after declaring victory outside the 552 00:37:37,430 --> 00:37:42,450 courthouse, he was drinking a beer on a live stream and talking about how he 553 00:37:42,450 --> 00:37:44,010 expected he might not get any jail time. 554 00:37:44,860 --> 00:37:45,860 How are you feeling? 555 00:37:46,040 --> 00:37:51,380 You know, pretty good. You know, there was a chance that the government could 556 00:37:51,380 --> 00:37:56,760 have put me in jail for 10 years and fined me $20 million, but right now I'm 557 00:37:56,760 --> 00:37:58,760 looking at zero to six months. 558 00:37:59,640 --> 00:38:04,260 You may have gotten off and not guilty on some charges, but you were convicted 559 00:38:04,260 --> 00:38:06,160 of several fraud charges, which is serious. 560 00:38:06,820 --> 00:38:13,700 And I really believe that there's something emotionally off with him. 561 00:38:15,620 --> 00:38:22,060 Martin is a brilliant young man, but sometimes people's skills don't 562 00:38:22,060 --> 00:38:27,760 translate well. So we will have some good discussions, but at the end of the 563 00:38:27,760 --> 00:38:31,300 day, you know, Martin, I think, has more than held his own in this case. 564 00:38:31,900 --> 00:38:33,960 I don't think I'm scared of the government. 565 00:38:34,260 --> 00:38:35,740 I call them junior varsity. 566 00:38:36,760 --> 00:38:42,520 Free on bail as he awaits sentencing, Shkreli returns to good old -fashioned 567 00:38:42,520 --> 00:38:47,010 trolling. And he targets an old friend, Charlemagne the God. 568 00:38:50,390 --> 00:38:50,790 I 569 00:38:50,790 --> 00:39:05,590 don't 570 00:39:05,590 --> 00:39:06,950 care about having peace with Montesquarelli. 571 00:39:07,210 --> 00:39:08,750 It's like I don't care about having peace with Satan. 572 00:39:09,270 --> 00:39:10,990 I don't care about Montesquarelli. 573 00:39:14,020 --> 00:39:18,040 A spat with a New York radio host is one thing. 574 00:39:18,900 --> 00:39:23,600 Shkreli has legions of supporters online who are willing to fight his fight or 575 00:39:23,600 --> 00:39:25,540 go after those who go after him. 576 00:39:27,100 --> 00:39:32,100 But when Shkreli targets a person who targeted him on the campaign trail, 577 00:39:32,340 --> 00:39:36,940 Hillary Clinton, he finds himself punching above his weight class. 578 00:39:38,000 --> 00:39:39,060 On Facebook. 579 00:39:39,720 --> 00:39:43,960 He posts a message which suggests, you know, the Clinton Foundation was 580 00:39:43,960 --> 00:39:48,260 in murders or covered -up murders, and he suggests that he's willing to pay $5 581 00:39:48,260 --> 00:39:53,860 ,000 to any of his readers who get a hair follicle out of her head. 582 00:39:55,420 --> 00:40:00,480 The Department of Justice says they're concerned and bring the issue up to the 583 00:40:00,480 --> 00:40:02,780 court. They want his bail revoked. 584 00:40:05,200 --> 00:40:09,840 When he apologized to the judge, you know, he said, It never occurred to him 585 00:40:09,840 --> 00:40:13,040 that the Secret Service would have to get involved, that anybody would take it 586 00:40:13,040 --> 00:40:14,040 seriously. 587 00:40:14,240 --> 00:40:18,940 And he was embarrassed that anybody really thought he would do anybody harm. 588 00:40:20,460 --> 00:40:22,860 The judge is not amused. 589 00:40:23,600 --> 00:40:28,920 The judge really focused on his making women feel uncomfortable from this 590 00:40:28,920 --> 00:40:34,420 journalist who, you know, he said he just admired and wanted to sort of. 591 00:40:34,860 --> 00:40:39,080 put his face next to in these pictures, whom he made feel very uncomfortable, to 592 00:40:39,080 --> 00:40:40,080 Hillary Clinton. 593 00:40:40,780 --> 00:40:43,460 To the judge, this isn't a humorous prank. 594 00:40:44,100 --> 00:40:48,720 She believes it's a comment that someone could take as a call to action. 595 00:40:49,760 --> 00:40:53,340 Well, the judge made the point that Shkreli doesn't know all of his 596 00:40:53,340 --> 00:40:56,700 social media. It's impossible to predict how somebody will interpret something 597 00:40:56,700 --> 00:40:57,700 like that. 598 00:40:58,160 --> 00:41:01,520 She told him that he was harassing women and making them feel unsafe. 599 00:41:04,220 --> 00:41:07,640 Judge Kiyo Matsumoto revokes Shkreli's bail. 600 00:41:08,160 --> 00:41:12,760 And she sends him to await his time until sentencing in Brooklyn's Central 601 00:41:12,760 --> 00:41:13,760 Detention Center. 602 00:41:15,180 --> 00:41:19,140 Oh, you done went too far now, you stupid prick. You know what I'm saying? 603 00:41:19,160 --> 00:41:23,000 I love the fact that that trolling actually eventually got him locked up. 604 00:41:23,040 --> 00:41:24,280 Because nobody cares when you troll rappers. 605 00:41:24,540 --> 00:41:26,360 Nobody cares when you troll hip -hop radio personalities. 606 00:41:26,700 --> 00:41:30,480 But take that trolling to a former first lady of the United States, a former 607 00:41:30,480 --> 00:41:33,380 senator, and now your dumb ass is in jail. Good riddance. 608 00:41:35,510 --> 00:41:37,850 Sentencing is scheduled for later this year. 609 00:41:38,590 --> 00:41:41,310 Shkreli could be facing up to 20 years. 610 00:41:41,710 --> 00:41:47,110 But with no prior convictions and no tangible loss of money by investors, 611 00:41:47,110 --> 00:41:48,870 likely he'll get much less. 612 00:41:49,790 --> 00:41:52,150 So what's next? 613 00:41:53,050 --> 00:41:57,350 One thing that strikes me is that it's hard to imagine when Martin Shkreli is 614 00:41:57,350 --> 00:42:00,590 going to stop being, you know, Martin Shkreli, when he's going to stop doing 615 00:42:00,590 --> 00:42:01,650 outrageous things. 616 00:42:03,310 --> 00:42:06,890 I don't know how long he's been in prison, but when he comes out, I don't 617 00:42:06,890 --> 00:42:07,890 him to go away. 618 00:42:08,010 --> 00:42:09,010 Anytime soon. 619 00:42:17,030 --> 00:42:17,450 American 620 00:42:17,450 --> 00:42:28,330 Greed, 621 00:42:28,330 --> 00:42:29,330 coming up next. 622 00:42:29,730 --> 00:42:31,350 CNBC, get yours.