‘Pharma bro’ Shkreli ordered jailed after online bounty on Hillary Clinton’s hair

Former drug company executive Martin Shkreli exits the US District Court after being convicted of securities fraud. (Reuters)
Updated 14 September 2017
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‘Pharma bro’ Shkreli ordered jailed after online bounty on Hillary Clinton’s hair

NEW YORK: A US judge on Wednesday ordered Martin Shkreli to be jailed while he awaits sentencing for securities fraud, citing a Facebook post in which the former drug company executive offered a $5,000 reward for a strand of Hillary Clinton’s hair.
Shkreli, 34, dubbed the “pharma bro” for exploits that include jacking up the price of a life-saving drug by 5,000 percent, was silent and stony-faced as US marshals led him out of a Brooklyn courtroom. He had been free on a $5 million bail since his December 2015 arrest.
US District Judge Kiyo Matsumoto ruled that Shkreli’s September 4 post, made shortly before Clinton embarked on a book tour, showed he posed a danger to the public. The post prompted an investigation by the US Secret Service, which is charged with protecting the former Democratic presidential candidate.
The judge rejected arguments by Shkreli’s lawyer, Benjamin Brafman, that the post was protected free speech, saying one of Shkreli’s Facebook followers – who number more than 93,000 – could take it seriously.
“This is a solicitation of assault in exchange for money,” the judge said. “That is not protected by the First Amendment.”
Shkreli was convicted in August of defrauding investors of two hedge funds he ran. Matsumoto on Wedenesday scheduled his sentencing for January 16.
Shkreli said in a letter to Matsumoto on Tuesday that his Facebook post was meant as satire. Brafman repeated that argument on Wednesday, but Matsumoto was not convinced.
“What’s funny about that?” she demanded.
Matsumoto, who was visibly angry throughout the hearing, also pointed to a post by Shkreli in July crudely saying he would have sex with a female journalist, Lauren Duca, as part of a pattern of threatening behavior.
Shkreli was banned from the social media platform Twitter in January for harassing Duca after she rebuffed his invitation to attend Trump’s inauguration.
After Matsumoto announced her decision, Brafman pleaded with her repeatedly to reconsider sending Shkreli to what he said would be a maximum security jail, or at least give him until Monday to prove he was not a danger.
The judge, however, was unmoved.
“We are obviously disappointed,” Brafman told reporters outside the courthouse. “We believed that the court arrived at the wrong decision. But she’s the judge, and right now we will have to live with this decision.”
Charges against Shkreli for defrauding hedge funds MSMB Capital and MSMB Healthcare carry a maximum sentence of 20 years, but he will likely serve much less, in part because none of the investors lost money.
Shkreli first rose to prominence in 2015 when, as chief executive of Turing Pharmaceuticals, he raised the price of anti-infection drug Daraprim by 5,000 percent. The move outraged US lawmakers and patients.


Young Iraqis use innovation to make a living in oil-rich south

Updated 23 min 16 sec ago
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Young Iraqis use innovation to make a living in oil-rich south

  • The job market for Iraqi youths has become starkly different in the post-Saddam Hussein era
  • In the decade which followed the US invasion and the dictator’s ouster in 2003, authorities continued to increase state hirings — with a heavy dose of nepotism

BASRA: From a roving cafe to scrap metal sculptures, young Iraqis unable to tap into the country’s oil wealth are having to find creative ways to make a living.
While their parents generally went straight into public sector jobs after graduation, the job market for Iraqi youths has become starkly different in the post-Saddam Hussein era.
In the decade which followed the US invasion and the dictator’s ouster in 2003, authorities continued to increase state hirings — with a heavy dose of nepotism.
But now, as 26-year-old Karrar Alaa discovered, there are no more guarantees.
Three years ago, he was counting on his business degree leading to a public sector job in the southern port city of Basra.
But tired of waiting, he has turned entrepreneur.
After gathering up all of his savings and borrowing money from relatives, Alaa invested in a car and transformed it into a coffee shop on wheels.
“It’s the first of its kind in Basra. I got the idea from a video shot in Europe and posted on Facebook,” he told AFP.
The “Coffee 2 Go” car has a giant plastic cup mounted on the roof, while an image of a cup of cappuccino and coffee beans is emblazoned on the body.
An initial investment of $20,000 has led to daily earnings of around 150,000 dinars, or $120, from cups of coffee made in a machine installed in the car boot.
Mashreq Jabbar earns similar sums from his little bookshop squeezed into a corridor of a Basra fashion mall.
“Renting a shop costs $6,000 a month; I only pay $2,500 for my hallway,” said the slim 26-year-old, as he tidied shelves of school books, romantic novels and poetry collections.
The geology graduate had also hoped to get a job as a public official, confident that his degree would make him employable in the local oil industry.
But even though the sector accounts for 89 percent of the state budget and 99 percent of Iraq’s export revenues, it provides only one percent of jobs as the majority of posts are filled by foreigners.
The lack of opportunities is nationwide; from the capital Baghdad to second city Mosul in the north, and from the agricultural east to the western desert.
It is not uncommon to find engineers working as taxi drivers, or sandwich stalls manned by literature graduates in a country of avid readers.
Officially, 10.8 percent of Iraqis are jobless, while youth unemployment is twice as high in a country where 60 percent of the population are aged under 24.
A mushrooming number of private universities — with Baghdad boasting around 30 — has made the situation even worse among graduates.
The private sector which emerged after Saddam’s rule has failed to fill the employment gap, with many young Iraqis holding out for the coveted public sector posts.
“The common view is that there’s no choice but to work in the public sector,” said Ahmed Abdel Hassan, an economics professor at the University of Basra.
“Young people who go to work in the private sector say it’s a temporary move before getting a post in the public sector,” he said.
Even Basra’s entrepreneurs see the benefits, with Alaa noting the social security and pension perks, while Jabbar pointed to civil servants’ guaranteed salaries.
Many of those holding out for a state job, however, are left unable to move out of their parents’ house.
Omar Abdallah, 28, had pinned his hopes on getting a teaching job at the end of his studies in fine art.
Iraq once had a high-quality and free education system, but that was left in tatters following the international embargo of the 1990s after Saddam’s invasion of Kuwait.
Having failed to land a job and with no capital to start a business of his own, Abdallah began collecting scrap metal.
“I could only count on myself and my talent,” he said at his family home, where one room serves as both his workshop and exhibition space.
Abdallah has transformed old bicycle chains into scorpions, cutlery into dragonflies and used nuts and bolts to make motorbike models.
In a good month he can sell half a dozen sculptures, charging between $200 and $250 apiece.
“People love my sculptures,” he said proudly. “They tell me: ‘How did you manage to make something so beautiful out of rubbish?’“