Shkreli investor to recover losses.
A NJ federal court ordered convicted fraudster Martin Shkreli to pay one defrauded hedge fund investor about $388,000 in restitution.
Shkreli already has been sentenced in his criminal case to seven years in prison, a fine, and forfeiture of over $7 million in assets for defrauding the investor, Richard Kocher, and others. That conviction is on appeal.
Kocher was the only one of Shkreli’s investors to seek restitution for misleading Kocher about his two hedge funds, sending them phony financial performance statements and refusing to redeem their investments when they asked.
Although Shkreli had already returned a little more than his original investment, Kocher sued to recover lost profits he had to pay to a partner he had to take into a real estate deal because he could not get back his investment for many months. Kocher sought to recover over $750,000 he paid to the partner as a result of Shkreli’s delay.
The court concluded that if Shkreli had not defrauded Kocher, he would have been able to use his own money for the real estate deal and not had to take on a partner. The judge ordered Shkreli to pay just $388,000 because Kocher had already gotten $390,000 in restitution from Shkreli.
Shkreli remains in jail while his criminal conviction is on appeal.
See earlier blog posts on Martin Shkreli:
Lisa Bragança recovers losses for investors all over the country, protects whistleblowers, and defends individuals and businesses in government investigations. As a Branch Chief with the SEC Division of Enforcement, Lisa investigated a wide range of investment fraud and Wall Street misconduct.
You can reach Lisa at (847) 906-3460. You can follow Lisa on Twitter @LisaBraganca.
Disclaimer: This information is for general purposes only and should not be interpreted to indicate a certain result will occur in your specific legal situation. The information on this website is not legal advice and does not create an attorney-client relationship.