US judge orders ex-drug executive Martin Shkreli to give up $7.36 million

NEW YORK, March 5 (Reuters) - Former drug company executive Martin Shkreli may have to give up a Picasso and a one-of-a-kind Wu-Tang Clan album, after a U.S. judge on Monday ordered him to forfeit $7.36 million following his conviction of defrauding investors.

U.S. District Judge Kiyo Matsumoto in Brooklyn said the assets Shkreli could forfeit to satisfy the judgment also include $5 million in a brokerage account and his stake in Vyera Pharmaceuticals, one of the drug companies he founded.

Shkreli is scheduled to be sentenced for securities fraud on Friday.

A lawyer for Shkreli could not immediately be reached for comment on the judge's order.

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Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, right, exits federal court with his attorney Benjamin Brafman, left, in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017. Shkreli, notorious for raising the price of a potentially life-saving drug by 5,000 percent, was found guilty Friday of defrauding investors in two hedge funds and in�Retrophin Inc., a pharmaceutical company he co-founded. Shkreli was convicted of three of eight charges, including securities fraud. Photographer: Peter Foley/Bloomberg via Getty Images
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, right, exits federal court with his attorney Benjamin Brafman, left, in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017. Shkreli, notorious for raising the price of a potentially life-saving drug by 5,000 percent, was found guilty Friday of defrauding investors in two hedge funds and in�Retrophin Inc., a pharmaceutical company he co-founded. Shkreli was convicted of three of eight charges, including securities fraud. Photographer: Peter Foley/Bloomberg via Getty Images
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, left, speaks to members of the media with his attorney Benjamin Brafman outside federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017. Shkreli, notorious for raising the price of a potentially life-saving drug by 5,000 percent, was found guilty Friday of defrauding investors in two hedge funds and in�Retrophin Inc., a pharmaceutical company he co-founded. Shkreli was convicted of three of eight charges, including securities fraud. Photographer: Peter Foley/Bloomberg via Getty Images
NEW YORK, NY - AUGUST 04: Former pharmaceutical executive Martin Shkreli pauses while speaking to the media in front of U.S. District Court for the Eastern District of New York with members of his legal team after the jury issued a verdict, August 4, 2017 in the Brooklyn borough of New York City. Shkreli was found guilty on three of the eight counts involving securities fraud and conspiracy to commit securities and wire fraud. (Photo by Spencer Platt/Getty Images)
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, exits federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017. Shkreli, notorious for raising the price of a potentially life-saving drug by 5,000 percent, was found guilty Friday of defrauding investors in two hedge funds and in�Retrophin Inc., a pharmaceutical company he co-founded. Shkreli was convicted of three of eight charges, including securities fraud. Photographer: Peter Foley/Bloomberg via Getty Images
NEW YORK, NY - AUGUST 4: (L to R) Lead defense attorney Benjamin Brafman walks with former pharmaceutical executive Martin Shkreli after the jury issued a verdict at the U.S. District Court for the Eastern District of New York, August 4, 2017 in the Brooklyn borough of New York City. Shkreli was found guilty on three of the eight counts involving securities fraud and conspiracy to commit securities and wire fraud. (Photo by Drew Angerer/Getty Images)
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, right, arrives at federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017. The 34-year-old Shkreli, known as 'Pharma Bro,' is accused of taking money from investors in his previous hedge funds and using it to start Retrophin, then using the drug-development company's cash to pay them back. Photographer: Peter Foley/Bloomberg via Getty Images
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, while his attorney Benjamin Brafman, right, speaks to members of the media outside federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017. Shkreli, notorious for raising the price of a potentially life-saving drug by 5,000 percent, was found guilty Friday of defrauding investors in two hedge funds and in�Retrophin Inc., a pharmaceutical company he co-founded. Shkreli was convicted of three of eight charges, including securities fraud. Photographer: Peter Foley/Bloomberg via Getty Images
NEW YORK, NY - AUGUST 04: Former pharmaceutical executive Martin Shkreli speaks to the media in front of U.S. District Court for the Eastern District of New York with members of his legal team after the jury issued a verdict, August 4, 2017 in the Brooklyn borough of New York City. Shkreli was found guilty on three of the eight counts involving securities fraud and conspiracy to commit securities and wire fraud. (Photo by Spencer Platt/Getty Images)
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, right, arrives at federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017. The 34-year-old Shkreli, known as 'Pharma Bro,' is accused of taking money from investors in his previous hedge funds and using it to start Retrophin, then using the drug-development company's cash to pay them back. Photographer: Peter Foley/Bloomberg via Getty Images
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, left, exits federal court with his attorney Benjamin Brafman in the Brooklyn borough of New York, U.S., on Thursday, Aug. 3, 2017. The 34-year-old Shkreli, known as 'Pharma Bro,' is accused of taking money from investors in his previous hedge funds and using it to start Retrophin, then using the drug-development company's cash to pay them back. Photographer: Peter Foley/Bloomberg via Getty Images
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, arrives at federal court in the Brooklyn borough of New York, U.S., on Thursday, Aug. 3, 2017. The 34-year-old Shkreli, known as 'Pharma Bro,' is accused of taking money from investors in his previous hedge funds and using it to start Retrophin, then using the drug-development company's cash to pay them back. Photographer: Peter Foley/Bloomberg via Getty Images
NEW YORK, NY - AUGUST 3: (L to R) Former pharmaceutical executive Martin Shkreli and attorney Benjamin Brafman depart the U.S. District Court for the Eastern District of New York, August 3, 2017 in the Brooklyn borough of New York City. Jurors finished their fourth day of deliberations and have not reached a verdict. Shkreli faces eight counts of securities fraud and conspiracy to commit securities and wire fraud. (Photo by Drew Angerer/Getty Images)
NEW YORK, NY - AUGUST 3: Former pharmaceutical executive Martin Shkreli departs the U.S. District Court for the Eastern District of New York, August 3, 2017 in the Brooklyn borough of New York City. Jurors finished their fourth day of deliberations and have not reached a verdict. Shkreli faces eight counts of securities fraud and conspiracy to commit securities and wire fraud. (Photo by Drew Angerer/Getty Images)
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, exits federal court with his attorney Benjamin Brafman, right, in the Brooklyn borough of New York, U.S., on Thursday, Aug. 3, 2017. The 34-year-old Shkreli, known as 'Pharma Bro,' is accused of taking money from investors in his previous hedge funds and using it to start Retrophin, then using the drug-development company's cash to pay them back. Photographer: Peter Foley/Bloomberg via Getty Images
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, leaves federal court with his attorney Benjamin Brafman, left, in the Brooklyn borough of New York, U.S., on Wednesday, Aug. 2, 2017. The jury mulling the fate of Shkreli ended a third day of deliberations without a verdict. Photographer: Peter Foley/Bloomberg via Getty Images
NEW YORK, NY - AUGUST 2: Former pharmaceutical executive Martin Shkreli (c) and attorney Benjamin Brafman (l) depart the U.S. District Court for the Eastern District of New York, August 2, 2017 in the Brooklyn borough of New York City. After hearing closing arguments on Friday, jurors are set to begin deliberations on Monday morning. (Photo by Joe Penney/Getty Images)
NEW YORK, NY - AUGUST 2: Former pharmaceutical executive Martin Shkreli departs the U.S. District Court for the Eastern District of New York, August 2, 2017 in the Brooklyn borough of New York City. After hearing closing arguments on Friday, jurors are set to begin deliberations on Monday morning. (Photo by Joe Penney/Getty Images)
NEW YORK, NY - AUGUST 03: (L-R) Former pharmaceutical executive Martin Shkreli walks with attorney Benjamin Brafman as they arrive at the U.S. District Court for the Eastern District of New York, August 3, 2017 in the Brooklyn borough of New York City. Jurors are continuing deliberations on Thursday. Shkreli faces eight counts of securities fraud and conspiracy to commit securities and wire fraud. (Photo by Spencer Platt/Getty Images)
NEW YORK, NY - AUGUST 2: (L-R) Former pharmaceutical executive Martin Shkreli and attorney Benjamin Brafman arrive at the U.S. District Court for the Eastern District of New York, August 2, 2017 in the Brooklyn borough of New York City. Jurors are continuing deliberations on Wednesday. Shkreli faces eight counts of securities fraud and conspiracy to commit securities and wire fraud. (Photo by Drew Angerer/Getty Images)
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, leaves federal court with his attorney Benjamin Brafman, left, in the Brooklyn borough of New York, U.S., on Wednesday, Aug. 2, 2017. The jury mulling the fate of Shkreli ended a third day of deliberations without a verdict. Photographer: Peter Foley/Bloomberg via Getty Images
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, leaves federal court in the Brooklyn borough of New York, U.S., on Wednesday, Aug. 2, 2017. The jury mulling the fate of Shkreli ended a third day of deliberations without a verdict. Photographer: Peter Foley/Bloomberg via Getty Images
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Shkreli, 34, has been in jail since September, when Matsumoto revoked his bail after he offered a $5,000 bounty for a strand of Hillary Clinton's hair in a Facebook post.

Shkreli became notorious as the "Pharma Bro" when he raised the price of anti-parasitic drug Daraprim by over 5,000 percent in 2015 while he was chief executive officer of Turing Pharmaceuticals. Turing is now Vyera.

In December 2015, Shkreli told Bloomberg Businessweek that he had bought the Wu-Tang Clan's "Once Upon a Time in Shaolin" when the hip-hop group auctioned the sole copy of the album to the highest bidder. Bloomberg reported that he paid $2 million for it.

Shkreli has also boasted of owning a Picasso painting.

A jury found Shkreli guilty last August of securities fraud charges unrelated to Daraprim. They determined that he lied to investors about the performance of two hedge funds he ran, MSMB Capital and MSMB Healthcare. He also was found guilty of conspiring to manipulate the stock price of another drug company he founded, Retrophin Inc.

Shkreli's lawyers have asked that he be sentenced to 12 to 18 months in prison. They argued in a court filing that a lenient sentence is warranted partly because the investors eventually came out ahead when Shkreli paid them in stock and cash from Retrophin.

Matsumoto has already ruled that when Shkreli is sentenced, he will be held responsible for $10.4 million in losses, including all of the money his investors entrusted to his hedge funds. She said that regardless of the investors' ultimate gains, Shkreli got their money in the first place through fraud.

Although the $10.4 million loss will result in a higher recommended sentence under federal guidelines, Matsumoto is not required to follow those guidelines.

(Reporting By Brendan Pierson in New York; editing by Grant McCool)

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