Case library · The Con
Hedge Fund Shell Game
United States v. Shkreli (2019)
Charge: Securities fraud and conspiracy to commit securities fraudCourt: U.S. Court of Appeals, 2d Cir. (on appeal from E.D.N.Y.)State: New YorkDocket: The Con
The facts
A young man ran two small hedge funds. Prosecutors said he lied to get people to invest and then lied again to keep them there, sending out performance reports that did not match what the funds actually held. When the money ran short he used stock and consulting deals from a drug company he controlled to settle with unhappy investors. His answer was that everybody was paid back in the end, so nobody was really harmed.
You have the facts the court had. Guilty or not guilty? Call it in the game with your friends, then see what the court actually decided. Wrong call, you drink.
Citation: United States v. Shkreli, 779 F. App'x 38 (2d Cir. 2019) (No. 18-819-cr)
Read more at skadden.com. The source reveals the outcome.