Saturday, June 24, 2017

Clearing Dr. Thomas Koestler's Name...

A bit over three quarters of a year ago, we first made mention of the notion, on this blog -- and, quite reasonably so at the time -- that Dr. Koestler's name might come up, in Mr. Shkreli's eight count felony securities fraud trial in the federal District Courts, sitting in Brooklyn. And we were unsure how he would be portrayed.

As of this morning -- based on a 41-page order and opinion, just filed there -- it is clear that neither the prosecution, nor the defense intend to call Dr. Koestler.

It is also now abundantly clear that Dr. Koestler was simply another one of Mr. Shkreli's (allegedly) largely-duped victims.

Duped out of payments for his consulting services -- in fact, Dr. Koestler has won a $2.6 million arbitration, on that score -- but is having trouble forcing Mr. Shkreli to pay that award -- as (it is claimed) Mr. Shkreli maintains no bank accounts, of any kind, in the US. Uh-huh.

. . . .At oral argument. . . the parties advised the court that the government will not call investor [XX] as a witness, and that as a result the defendants do not anticipate that they would move to introduce the arbitration decisions. . . .

Should Mr. Shkreli decide to call investor [XX] and offer the arbitration decision into evidence, he shall promptly alert the court and shall also provide the court with a copy of the decision. (Tr. 68:3-5.) The same process should be followed if Mr. Shkreli seeks to introduce evidence of the arbitration with employee [Dr. Thomas Koestler]. . . .

We here unmask him, as we wish to exonerate him -- and formally correct the record -- lest there be any future confusion. And so, we will tip our hat, belatedly to Dr. Koestler -- on this score, at least. We may never know what happened at (and after) legacy Schering-Plough, but we do now know Dr. Koestler was purely a victim -- in the Shkreli (alleged) serial fraud saga, on trial starting Monday, in Brooklyn. Do tune in, at the other property -- as we will provide nearly real time updates. Now you know -- right? And ". . .now there's gravel, in our voices. . . ." It's time for a mountain bike ride, along the lake-shore!


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