On Friday, prosecutors asked the court to slap Shkreli with a $7.4 million fine, while identifying "substitute assets" he could surrender to cover the total cost.
After Martin Shkreli was convicted on multiple counts of fraud earlier this year, it seemed like we were finally done with the villainous pharma-douche who bought (and threatened to destroy) Wu-Tang Clan's one-of-a-kind album purely out of spite.
Shkreli paid about $2 million for the album in 2015.
"These funds were, in essence, the life blood that fueled the fraud scheme", the prosecutors wrote of the estimated $3 million of the money he received from his activities at MSMB Capital hedge fund, $3.4 from MSMB Healthcare and $960,000 from biotech company Retrophin connected to his conspiracy to commit securities fraud conviction.
Shkreli's lawyer is arguing since of his investors lost any money, he shouldn't have to give anything up. He faces up to 20 years. The sale was completed while Shkreli was in jail, after his bail was revoked for posting a weird request on Facebook to pay $5,000 for a strand of former Secretary of State Hillary Clinton's hair. This resulted in a judge revoking his bail and sending him to the Metropolitan Detention Center.
"Once Upon A Time In Shaolin" has been the source of controversy ever since it was announced in 2014. He later got into a public dispute with members of the rap group, at one point releasing a freakish video in which he - surrounded by masked men - threatened to erase Ghostface Killah from the album entirely. He didn't make good on his promise, however, and instead played just 10 minutes of the album over streaming video while talking over the music. Who knew the feds would take such an interest in ultra-rare rap records? In addition, an illustrator who says his art was used in the album's liner notes without his permission also sued, although that case was settled.
Assistant U.S. Attorney Claire Kedeshian calls the figure a "conservative computation" of the amount Shkreli should be made to forfeit after he was found guilty in August of three counts. In September, Shkreli posted Shaolin on eBay and registered a winning bid of $1 million by an unknown buyer. It is unknown who now possesses "Once Upon A Time In Shaolin", although HipHopDX presented some circumstantial evidence in September suggesting that Shkreli probably still has it.