Trump Attorneys Blast James Over Shkreli Comparison in Request for Lifetime Ban on Former President
2024 ELECTIONS
Trump Attorneys Blast James Over Shkreli Comparison in Request for Lifetime Ban on Former President
Martin Shkreli was given the lifetime ban for price gouging, inflating a $17.60 drug to $750.
Trump Attorneys Blast James Over Shkreli Comparison in Request for Lifetime Ban on Former President
Former US President Donald Trump departs for his sexual assault defamation trial in New York on January 25, 2024. Trump’s trial resumes on Thursday, two days after the Republican primaries in New Hampshire, with the former US president expected to testify. Writer Jean Carroll, 80, is seeking more than $10 million alleging that Trump defamed her when he mocked her sexual assault accusations by saying she “is not my type.”
By Catherine Yang
1/26/2024
Updated:
1/26/2024
Legal counsel for former President Donald Trump accused New York Attorney General Letitia James of “shameless abuse of power” in her comparison of penalties sought against him to the lifetime ban of former pharmaceutical executive Martin Shkreli from the drug industry.
Among the several penalties the attorney general has asked a state judge to grant is barring President Trump from doing business in New York permanently, including doing business with New York-based financial institutions.
In a strongly-worded letter to New York Supreme Court Justice Arthur Engoron, defense attorney Clifford Robert accused Ms. James of being politically motivated against President Trump and argued this was an inappropriate comparison.
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“The attorney general’s brazen attempt to compare this case to that of Martin Shkreli fully demonstrates her willingness to wield the power of her office recklessly in her crusade to destroy the front-running candidate for President of the United States,” the letter reads.
Mr. Robert asked the judge to reject the attorney general’s citation of the Shkreli case as “misplaced,” “irresponsible,” and “baseless,” while claiming the comparison itself was motivated out of “desperation and obvious frustration” with President Trump’s “ongoing ascent toward the White House.”
“Left unchecked, the attorney general’s conduct will cause irreparable damage to the legal system and the New York business community,” he added.
Case Comparison
Mr. Shkreli had been CEO of Turing Pharmaceuticals and was found liable for price gouging in 2022, inflating the price of a drug used to treat AIDS patients from $17.60 to $750.
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Penalties included $64.6 million disgorgement, or payment of the profits he made from inflating the drug prices, and a lifetime ban from the pharmaceutical industry.
Mr. Shkreli appealed, but lost.
This week, a federal appeals court upheld that lifetime ban, finding that given his “pattern of past misconduct, the obvious likelihood of its recurrence, and the life-threatening nature of its results,” the penalty was appropriate.
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State attorneys argued in a recent court filing that this case law supported their request for a lifetime ban on President Trump doing business in New York.
Mr. Robert disagreed, bolding and italicizing several times in the letter that “not one witness, not one complaint, and not one victim” was produced to support the petition’s claims of fraud.
It was not so in the Shkreli case, where witnesses had testified regarding the pricing schemes.
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This included manufacturers of generic versions of the drug who testified as to how they were pushed out of the market, and attorneys general from several states who investigated Mr. Shkreli on the behalf of patients.
“Those witnesses proved Shkreli’s conduct caused actual harm to the marketplace and to desperately ill consumers victimized by the scheme,” Mr. Robert argued.
“Shkreli’s conduct forced chronically ill patients to purchase a life-saving drug at abusively and monopolistically [sic] inflated prices.
“The lifetime ban from the pharmaceutical industry was entered to prevent Shkreli from ever again menacing a fragile populace and extorting money from those in need of life-saving medical treatment.”
President Trump’s case is no equivalent, Mr. Robert argued.
“President Trump’s net worth exceeded that reported in his financials and he was a highly sought-after ‘whale’ of a client who was overqualified for the Private Wealth loan terms and who formed a highly profitable relationship with the banks,” Mr. Robert wrote, citing several pages of transcripts from the trial.
He argued that the only assertion of fraud came from the attorney general’s office, rather than the banks or insurers named.
During the trial, officials with Deutsche Bank and Zurich Insurance testified they had not solely relied on the Trump Organization statements of financial condition, but did their own financial analyses.
“The absurdity of the attorney general’s latest effort would be almost comical but for the sobering future consequences of her shameless abuse of power,” the letter reads.
“Such shocking and tyrannical interference in the free markets for political gain places every New York business transaction at risk.”
In a footnote, Mr. Robert took issue with a separate “frivolous” comparison made with Bernard Madoff during closing arguments, noting that Mr. Madoff pleaded guilty to 11 charges and it was found that his fraud affected thousands of victims.
President Trump has maintained that he has done nothing wrong, and toward the end of the trial argued that he was the one owed damages after suffering accusations of fraud at length.
Case Background
The case arose from a claim made by Michael Cohen, a personal lawyer of President Trump’s turned critic, in 2019. He alleged that President Trump would inflate and deflate his net worth on paper in order to obtain better loan terms.
Following a multi-year investigation, Ms. James sued President Trump, the Trump Organization, and several of its executives in 2022 on seven claims related to fraud in the statements of financial condition from 2011 to 2021.
An appeals court later set a statute of limitations on the case to transactions after 2016.
The statements are not mandatory financial documents, but rather a marketing piece the organization used during deals. These statements would summarize the value of Trump Organization assets, adding up to a total net worth for President Trump.
In September 2023, Justice Engoron issued a summary judgment finding President Trump liable for fraud and inflating his net worth by up to $2.2 billion in these statements.
The upcoming trial would deal with penalties, as well as require state attorneys to show materiality and intent to defraud.
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The trial began on Oct. 2, 2023, and lasted 44 days. The attorney general is also seeking other penalties, including $370 million in damages and to bar Eric Trump and Donald Trump Jr. from doing business in New York for five years.
After a winter break, closing arguments were made earlier this month, and Judge Engoron has said the earliest he would issue a decision is the end of this month.
2024-01-26
Harry Truman:
“Once a government is committed to the principle of silencing the voice of opposition, it has only one way to go, and that is down the path of increasingly repressive measures, until it becomes a source of terror to all its citizens and creates a country where everyone lives in fear.”
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wllewellyn1
2024-01-26
Thomas Jefferson:
When the people fear the government, tyranny has found victory. The federal government is our servant, not our master!”
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