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Former Retrophin exec convicted of fraud

A U.S. court in Brooklyn found former drug company executive Martin Shkreli guilty of fraud, Bloomberg News reported Aug. 4.

The jury found Shkreli, known mostly for raising the price of the anti-infection drug Daraprim by 5,000% in 2015 when he was CEO of Turing Pharmaceuticals, guilty of defrauding investors in hedge funds MSMB Capital Management LLC and MSMB Healthcare Ltd. and pharmaceutical company Retrophin Inc., which was co-founded by Shkreli.

Shkreli was ousted as CEO of Retrophin in 2014.

He was convicted of two counts of securities fraud and one count of conspiracy but acquitted of five other conspiracy counts, Reuters reported the same day.

The jury reached its verdict on the fifth day of deliberations after a monthlong trial. Shkreli could face up to 20 years in prison for securities fraud.

Federal prosecutors accused Shkreli of lying about the hedge funds' finances to investors and concealing trading losses from them, and then secretly using the money to start Retrophin. They also claimed that after losing the money, Shkreli paid investors back with cash and stock misappropriated from Retrophin by having them sign settlement or consulting agreements.

According to Reuters, board members of Retrophin testified that they did not approve such agreements in advance.

U.S. District Judge Kiyo Matsumoto allowed Shkreli to return home. A date for sentencing has not yet been set.

"This was a witch hunt of epic proportions. Maybe they found one or two broomsticks, but at the end of the day, we've been acquitted of the most important charges," Bloomberg reported, citing Shkreli.