'Pharma Bro' Lawyer Fraud Conspiracy Verdict

SCARSDALE, NY — A lawyer and Scarsdale resident faces up to 20 years in prison after being convicted by a federal jury of securities and wire fraud conspiracy. Evan Greebel, 44, was accused of helping “Pharma Bro” Martin Shkreli cover up financial fraud.

Greebel, a former partner at the New York office of Katten Muchin Rosenman LLP, who served as outside counsel to Retrophin Inc., a biopharmaceutical company, was convicted of two counts of conspiracy to commit securities fraud and conspiracy to commit wire fraud.

“By helping Retrophin CEO Martin Shkreli steal millions of dollars and cover up Shkreli’s fraud, the defendant Evan Greebel betrayed the trust placed in him by Retrophin’s board of directors to represent the company’s best interests,” said Acting United States Attorney Rohde. “Today’s verdict sends a powerful message that this office, together with our law enforcement partners, will hold lawyers accountable when they use their legal expertise to facilitate the commission of crimes.”

Evidence at the trial said that between 2011 and 2014, Greebel conspired with Shkreli and others in a scheme to misappropriate Retrophin’s assets in order to pay off defrauded investors in Shkreli’s hedge funds.

As part of this scheme, Greebel negotiated and prepared so-called “settlement” agreements with certain defrauded investors, which caused Retrophin to reimburse those investors more than $2 million in cash and stock, even though Retrophin was not responsible for those losses.

In addition, between 2012 and 2014, Greebel and Shkreli engaged in a scheme to defraud investors and potential investors in Retrophin by attempting to illegally control the price and trading volume of Retrophin’s stock.

In August, Shkreli, 34, of Manhattan, was convicted of securities fraud and securities fraud conspiracy by a federal jury. He is awaiting sentencing.

Photo caption: Martin Shkreli. Photo credit: Eduardo Munoz Alvarez/Getty Images.