2021-04-06 sec-litreleases litigation_release 66 KB 2,161 chars

SEC v. Martin Shkreli; and Evan Greebel, No. LR-25065, Eastern District of New York (Apr. 6, 2021) — Press Release

raw: Martin Shkreli, et al.

Martin Shkreli, et al., No. LR-25065 (E.D.N.Y. Apr. 6, 2021)

Caption
SEC v. Martin Shkreli, et al.
Source PDF JSON
summary

Evan Greebel, former outside counsel to Retrophin, Inc., assisted Martin Shkreli's scheme to mislead Retrophin into issuing stock and making cash payments to investors, resulting in a final consent judgment enjoining him from violating securities laws and barring him from serving as a public company officer or director.

paragraph

Evan Greebel, former outside counsel and corporate secretary of Retrophin, Inc., aided and abetted Martin Shkreli's scheme to mislead Retrophin into issuing stock and making cash payments to investors in Shkreli's hedge funds between September 2013 and March 2014. Greebel drafted sham consulting agreements that concealed the true purpose of the payments, which were to settle potential claims against Shkreli. Greebel was barred from serving as an officer or director of a public company and prohibited from violating Section 10(b) and Rule 10b-5, but no civil monetary penalties were imposed due to his prior criminal conviction and sentencing.

narrative

The Securities and Exchange Commission (SEC) obtained a final consent judgment against Evan Greebel, former outside counsel and corporate secretary of Retrophin, Inc., for aiding and abetting fraud orchestrated by Martin Shkreli. Between September 2013 and March 2014, Shkreli, who was then Retrophin's CEO and controlled various hedge funds, fraudulently induced Retrophin to issue stock and make cash payments to certain disgruntled investors in his hedge funds. Greebel helped draft sham consulting agreements that disguised these payments as legitimate services, while concealing their true purpose - settling potential claims against Shkreli - from Retrophin's board. Greebel was already convicted in a related criminal case and, in the civil action, consented to a judgment enjoining him from violating Section 10(b) and Rule 10b-5 of the Securities Exchange Act and barring him from serving as an officer or director of any public company. No civil monetary penalties were imposed, and the SEC's litigation against Shkreli remains ongoing. The SEC's investigation and litigation were led by Gerald Gross, Eric Schmidt, and Paul Gizzi.

Enriched metadata

Scheme
accounting-fraud (95%)
Court
Eastern District of New York
Outcome
convicted
Entity
Martin Shkreli
Classified accounting-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Statutes
Section 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionMartin ShkreliEvan Greebel
Keywords
shkrelimartin shkreligreebelfinalmartinagainstsec'ssecurities exchangeshkreli sec'shedge fundsagainst shkreliwhoretrophinretrophin'spayments

Exhibits & Attached Documents (2)

Extracted insights

Entities 10
  • person against evan greebel
  • person Evan Greebel
  • company evan greebel, former lawyer to retrophin, inc.
  • person fraudulent conduct
  • person Martin Shkreli
  • company publicly traded pharmaceutical company
  • company retrophin, inc.
  • agency sec's complaint
  • court united states district court
  • court united states district court for the eastern district of new york
Triples 39
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • SEC filed complaint against Evan Greebel for assisting fraud orchestrated by Martin Shkreli
  • United States District Court for the Eastern District of New York entered final consent judgment against Evan Greebel
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • SEC filed complaint against Evan Greebel for assisting fraud orchestrated by Martin Shkreli
  • United States District Court entered final consent judgment against Evan Greebel on April 5, 2021
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • SEC filed complaint against Evan Greebel for assisting fraudulent conduct by Martin Shkreli
  • United States District Court entered final consent judgment against Evan Greebel on April 5, 2021
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • SEC filed complaint against Evan Greebel on December 17, 2015
  • United States District Court entered final consent judgment against Evan Greebel on April 5, 2021
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • SEC filed complaint against Evan Greebel for assisting fraudulent conduct by Martin Shkreli
  • SEC obtained final judgment against Evan Greebel, former lawyer to Retrophin, Inc.
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • SEC filed complaint against Evan Greebel for assisting fraud orchestrated by Martin Shkreli
  • United States District Court for the Eastern District of New York entered final consent judgment against Evan Greebel
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • SEC filed complaint against Evan Greebel for assisting fraudulent conduct by Martin Shkreli
  • United States District Court entered final consent judgment against Evan Greebel on April 5, 2021
  • United States District Court for the Eastern District of New York entered final consent judgment against Evan Greebel
  • Evan Greebel is former lawyer to Retrophin, Inc.
  • Retrophin, Inc. is publicly traded pharmaceutical company
  • Martin Shkreli founded Retrophin, Inc.
  • Greebel assisted fraudulent conduct orchestrated by Shkreli
  • SEC filed complaint on December 17, 2015
  • SEC obtains final judgment against Evan Greebel
  • United States District Court for the Eastern District of New York entered final consent judgment against Evan Greebel
  • SEC's complaint filed December 17, 2015
  • Evan Greebel assisted fraudulent conduct orchestrated by Martin Shkreli
  • fraudulent conduct orchestrated by Martin Shkreli
  • Martin Shkreli founded Retrophin, Inc.
  • SEC obtains final judgment against lawyer
  • United States District Court for the Eastern District of New York entered final consent judgment against Evan Greebel
  • Evan Greebel was former lawyer to Retrophin, Inc.
  • Martin Shkreli founded Retrophin, Inc.
  • SEC's complaint alleged Greebel assisted certain fraudulent conduct
  • Shkreli orchestrated fraudulent conduct
PDF (from attached: pdf)
Complaint For Violations Of The Federal Securities Laws · Source
Text layers
Extracted body text (2,161c) 
SEC Obtains Final Judgment Against Lawyer Who Assisted Fraud Lit. Release No. 25065 / April 6, 2021 Securities and Exchange Commission v. Martin Shkreli, et al., 15-cv-7175 (KAM) (E.D.N.Y.) On April 5, 2021, the United States District Court for the Eastern District of New York entered a final consent judgment against Evan Greebel, the former lawyer to Retrophin, Inc., a publicly traded pharmaceutical company founded by Martin Shkreli. The SEC's complaint, filed on December 17, 2015, alleged that Greebel assisted certain fraudulent conduct orchestrated by Shkreli. According to the SEC's complaint, from September 2013 through March 2014, Shkreli, who was then Retrophin's CEO and also controlled various hedge funds, fraudulently induced Retrophin to issue stock and make cash payments to certain disgruntled investors in Shkreli's hedge funds. Specifically, the complaint alleged that Shkreli had investors enter into agreements with Retrophin that misleadingly stated that the payments were for consulting services, when in fact the payments were for the release of potential claims against Shkreli. This alleged misconduct was, according to the complaint, aided and abetted by Greebel, who was Retrophin's outside counsel and served as corporate secretary. The complaint alleged that Greebel drafted sham consulting agreements and failed to disclose to Retrophin's Board of Directors the true purpose of the agreements. Greebel was convicted in a related criminal case. In the Commission's action, Greebel consented to the entry of a final judgment enjoining him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and barring Greebel from serving as an officer or director of a public company. The final judgment does not impose civil money penalties in light of Greebel's conviction and sentence in the criminal case. The SEC's litigation against Shkreli is continuing. The SEC's investigation was conducted by Gerald Gross and Eric Schmidt, and the litigation is being led by Paul Gizzi and Mr. Schmidt. The case is being supervised by Sanjay Wadhwa. SEC Complaint Final Judgment
OCR text (2,161c · html-text · 99% conf) 
SEC Obtains Final Judgment Against Lawyer Who Assisted Fraud Lit. Release No. 25065 / April 6, 2021 Securities and Exchange Commission v. Martin Shkreli, et al., 15-cv-7175 (KAM) (E.D.N.Y.) On April 5, 2021, the United States District Court for the Eastern District of New York entered a final consent judgment against Evan Greebel, the former lawyer to Retrophin, Inc., a publicly traded pharmaceutical company founded by Martin Shkreli. The SEC's complaint, filed on December 17, 2015, alleged that Greebel assisted certain fraudulent conduct orchestrated by Shkreli. According to the SEC's complaint, from September 2013 through March 2014, Shkreli, who was then Retrophin's CEO and also controlled various hedge funds, fraudulently induced Retrophin to issue stock and make cash payments to certain disgruntled investors in Shkreli's hedge funds. Specifically, the complaint alleged that Shkreli had investors enter into agreements with Retrophin that misleadingly stated that the payments were for consulting services, when in fact the payments were for the release of potential claims against Shkreli. This alleged misconduct was, according to the complaint, aided and abetted by Greebel, who was Retrophin's outside counsel and served as corporate secretary. The complaint alleged that Greebel drafted sham consulting agreements and failed to disclose to Retrophin's Board of Directors the true purpose of the agreements. Greebel was convicted in a related criminal case. In the Commission's action, Greebel consented to the entry of a final judgment enjoining him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and barring Greebel from serving as an officer or director of a public company. The final judgment does not impose civil money penalties in light of Greebel's conviction and sentence in the criminal case. The SEC's litigation against Shkreli is continuing. The SEC's investigation was conducted by Gerald Gross and Eric Schmidt, and the litigation is being led by Paul Gizzi and Mr. Schmidt. The case is being supervised by Sanjay Wadhwa. SEC Complaint Final Judgment

Related documents (2)