Matsumoto did not set a sentencing date, which will happen after prosecutors and defense lawyers argue how much, if any, money Shkreli should be ordered to forfeit.
Shkreli faces a maximum prison sentence of 20 years, but is sure to receive a far-less-severe punishment than that, given his lack of a criminal record, and other factors.
“I think we are delighted in many ways,” Shkreli said outside of the courthouse. “I’m delighted the jury did its job … maybe they found one of two broomsticks, but at the end of the day we were acquitted of the most important charges in this case.”
Shkreli almost immediately afterward used his new Twitter account, @samthemanTP, to comment on the outcome of the case, which he called “a witch hunt.”
But acting United States Attorney Bridget Rhode, whose office prosecuted Shkreli, said, “We’re gratified as we stand here today at the jury’s verdict.”
“Justice has been served,” said Rhode, whose prosecution team next plans to try Shkreli’s co-defendant and former business lawyer Evan Greebel this fall.
Shkreli’s lawyer Benjamin Brafman said the amount of money Shkreli could be made to surrender would have been much higher if he had been found guilty of ripping off Retrophin, to repay swindled hedge-fund investors.
But Shkreli was acquitted of that charge, conspiracy to commit wire fraud.
Brafman said “we think verdict as it now stands, will permit this court to impose very lenient sentence,” despite the potential for imprisonment that all three charges carry.
He noted that Judge Matsumoto will have “enormous discretion” in sentencing Shkreli, who has no criminal history.
Brafman also said, “I think this verdict is a reasonably good verdict under the circumstances … we are 90 percent pleased.”
Prosecutors said a mountain of testimony and evidence at trial showed that Shkreli duped multiple investors into putting millions of dollars into two hedge funds he ran, MSMB Capital and MSMB Healthcare, by falsely claiming to have an excellent record of running such funds, and by falsely stating his investment strategy had a low level of risk.
After getting their money, prosecutor said, Shkreli quickly lost much of it, and also used some of it to capitalize his infant company Retrophin even as he continued sending out financial statements to investors claiming positive returns.
And when investors asked for their money to be redeemed to them in cash, Shkreli brushed them off for months or more, inventing excuses and suggesting alternative ways to pay them back, according to the prosecution’s case.
Two of the securities fraud counts for which Shkreli was convicted related to those hedge funds.
Prosecutors said that he then improperly used Retrophin stock and cash from the young firm to pay off the the funds’ investors.
While Shkreli was acquitted of on Retrophin-related count, he was convicted of securities fraud in connection with Retrophin.
The charges were unrelated to Shkreli’s first claim to public notoriety: raising the price of an anti-parasite drug called Daraprim by more than 5,000 percent in 2015, while heading another company, Turing Pharmaceuticals.
However, Shkreli was indicted in the federal case several months after that price increase came to light, and after he reveled in the widespread scorn that followed.
This is a breaking news story. Please check back for further updates.