Loosely speaking, it was - he was using the supposed gains of earlier investors to attract new investment, then using those new funds to pay off the earlier inv

Loosely speaking, it was - he was using the supposed gains of earlier investors to attract new investment, then using those new funds to pay off the earlier investors. It was spread across multiple investments rather than just one vehicle, but that seems kind of irrelevant. "Prosecutors were focused on Shkreli’s leadership of two hedge funds, MSMB Capital and MSMB Healthcare, and a pharmaceutical company, Retrophin. Shkreli raised millions for MSMB Capital, but not as much as he told investors. When he made a bad bet that doomed the hedge fund, he launched a scheme to cover it up, prosecutors said. He raised more money for another hedge fund, MSMB Heathcare, which he largely used to fund the start up of Retrophin. When disgruntled investors attempted to claim their profits, Shkreli used money from other investors and Retrophin cash and stock to pay them off, according to prosecutors." https://www.washingtonpost.com/news/business/wp/2017/08/04/martin-shkreli-jury-enters-fifth-day-of-deliberations/?utm_term=.bf75173963d6 https://www.washingtonpost.com/news/business/wp/2017/08/04/m...