Evan Greebel, 42, of Kaye Scholer LLP, was indicted by a federal grand jury on a charge of conspiracy to commit wire fraud, the U.S. Attorney for the Eastern District of New York says.
Shkreli was indicted on seven charges, including conspiracy to commit wire fraud, conspiracy to commit securities fraud and securities fraud.
Here’s what you need to know about Greebel and the charges:
1. Greebel Is Accused of Using His Law License to ‘Conceal’ & ‘Further’ Shkreli’s Scheme
The scheme is not related to Shkreli’s controversial hike of an AIDS and cancer drug in his current role at Turing Pharmaceuticals. It is instead connected to Shkreli’s time running a hedge fund and a different drug company. Shkreli is also being sued by that company, Retrophin. The company’s board removed Shkreli as its CEO last year.
Greebel served as lead outside counsel to Retrophin.
“As alleged, Martin Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit. His plots were matched only by efforts to conceal the fraud, which led him to operate his companies, including a publicly traded company, as a Ponzi scheme, where he used the assets of the new entity to pay off debts from the old entity,” U.S. Attorney for the Eastern District of New York Robert Capers said in a statement. “When regulators and auditors questioned Shkreli’s decisions, he joined forces with Evan Greebel, who used his law license and training to conceal and further the scheme.”
According to the indictment, which can be read above, Greebel conspired with Shkreli to “devise a scheme and artifice to defraud Retrophin and to obtain money and property from Retrophin by means of materially false and fraudlent pretenses, representations and promises.”
Shkreli is accused of using money from Retrophin to pay off the debt left by his failed hedge fund.
Assistant FBI Director-in-Charge Diego Rodriguez said in a statement, “In the end, Shkreli and Greebel used a series of settlement and sham consulting agreements that resulted in Retrophin and its investors suffering a loss in excess of $11 million. While the charges announced today are significant, they are but one example of what’s left to come as the FBI continues this investigation.”
2. He Became a Partner at Kaye Scholer in June After 12 Years at Another Firm
Greebel, of Scarsdale, New York, became a partner at Kaye Scholer LLP, in June 2015, according to his LinkedIn page.
“I specialize in mergers and acquisitions, corporate finance and securities law across numerous industries, including life sciences, cyber-security, technology, media and entertainment. My clients include public and private companies as well as private equity sponsors and their portfolio companies,” Greebel says. “I also represent companies that are developing innovative virtual currency related businesses. In addition, I routinely advise funds and banks on bitcoin and virtual currency related matters.”
Before joining Kaye Scholer, he worked at the Chicago-based firm Katten Muchin Rosenman LLP for 12 years in its New York office. His first job was as an associate at Fried, Frank, Harris, Shriver & Jacobson LLP.
He attended the University of Michigan and the Georgetown University Law School.
Greebel has recently become an expert on legal issues surrounding bitcoin.
“Evan is frequently interviewed by national and international media outlets on bitcoin and virtual currency related matters,” his bio on the Kaye Scholer website says.
He has represented the Winkelvoss twins’ bitcoin trust.
3. Retrophin Is Suing Shkreli for $65 Million
Shkreli is also being sued by Retrophin for $65 million, Forbes reports. He has called the accusations were “preposterous.”
Read Retrophin’s lawsuit below:
Retrophin said in a statement to Bloomberg that it has “fully cooperated with the government investigations into Mr. Shkreli.” The company said he was removed as CEO “because of serious concerns about his conduct.”
Greebel is not named in the lawsuit.
4. Shkreli Has Said He Cleared His Transactions With His ‘Counsel’s Blessing’
Shkreli has said outside counsel approved his dealings at Retrophin, but did not name that lawyer.
“Every transaction I’ve ever made at Retrophin was done with outside counsel’s blessing,” he said on the investment blog InvestorsHub in February.
Shkreli added that the allegations by Retrophin are “completely false, untrue at best and defamatory at worst.”
5. Greebel Is Married & Has a Son
Greebel married Jodi Citrin, a dietitian and nutrition counselor in 2007, according to a New York Times wedding announcement.
They have one son, Harrison.
The couple lives in a $1.55 million condo in New York, according to an Observer article.