Judge orders ‘Pharma Bro’ to hand over Wu-Tang album amid $10 million asset whack

MARTIN Shkreli was uncharacteristically repentant as he threw himself at the mercy of a judge, pleading: “I was a fool. I should have known better.”

HE WAS dubbed America’s most hated man — and that was before he bought the one-of-a-kind album from rap group Wu-Tang Clan and lorded it over everyone.

But now “Pharma Bro” Martin Shkreli will have to forfeit more than $10 million in assets, including his rare Wu-Tang Clan album as part of his punishment for committing securities fraud.

This week US District Judge Kiyo Matsumoto issued the order against the jailed Shkreli four days before he is to face sentencing for his conviction last year on charges he cheated wealthy investors in two failed hedge funds he was managing.

Mr Shkreli became known when he drew criticism when his pharmaceutical company increased the price of a critical HIV drug it owned the rights to from $13.50 to $750 a pill overnight.

Before he was first charged with securities fraud in 2015, the now 34-year-old embraced his role as Wall Street’s most visible villain.

On Twitter he frequently trolled and insulted people and would constantly tease Wu-Tang fans about not getting to hear the album.

The group declared that the album could not be made available commercially until the year 2103.

The prized album which he has now been forced to give up is called Once Upon a Time in Shaolin, and the celebrated rap ensemble only made a single copy of it which they sold at a silent auction.

Despite once promising to release the album if Donald Trump won the presidency, Mr Shkreli has live streamed himself listening to a couple songs but has appeared to relish in keeping the music to himself, much to the chagrin of Wu-Tang fans around the world.

Along with the album that Shkreli has boasted he bought for $US2 million (in what was considered the most expensive ever purchase of a musical recording), he would have to give up $7 million in cash in a brokerage account.

He also would be forced to forfeit other valuables including a Picasso painting and another unreleased recording that he claims he owns, Tha Carter V by rapper Lil Wayne.

The defence had argued that Shkreli shouldn’t have to forfeit anything because the hedge fund investors actually ended up making a profit from drug company stock he gave them.

In a recent letter to the judge asking for leniency, Shkreli wrote, “I was wrong. I was a fool. I should have known better.”

It was an abrupt change in tone for Shkreli from the defiant attitude on display during the trial, and even after his conviction when he was still out on bail.

The judge revoked the bail and jailed him in September when he posted he would pay a $US5000 bounty to anyone who could get a lock of Hillary Clinton’s hair while the prominent Democrat was on a book tour.

This courtroom sketch shows former pharmaceutical CEO Martin Shkreli, left, seated next to his lawyer Ben Brafman in federal court in New York. Picture: Elizabeth Williams

The defence is seeking a sentence of no more than 18 months behind bars.

As for the Wu-Tang album, it could be some time until it sees the light of day. The judge this week said the assets won’t be seized until Shkreli has a chance to appeal.

Reflecting the group’s fascination with fantasy narratives, The Wu-Tang Clan made just one copy of Once Upon a Time in Shaolin and stored it in a vault in Morocco while auctioning it.

The group declared that the album could not be made available commercially until the year 2103 but indicated that its owner was free to share it to private parties.

— with AP