No surprise here: “Pharma Bro” Martin Shkreli was hell to work for, a former employee testified Friday.
The ex-worker was so disgruntled after eight months at Shkreli’s hedge fund that she called the disgraced Rx-ecutive “mentally unstable” and threatened to “expose” him as a “scam artist” to investors, according to testimony.
Caroline Stewart had been hired at Shkreli’s MSMB Capital Management as a research analyst after going on three “benign” dates with him, she told a Brooklyn federal jury.
“If he f–ks me over one more time with respect to money then I’m going to expose him,” Stewart fumed right before her firing, according to a July 2011 IM message to CEO Kevin Mulleady that was revealed during her testimony.
“I’m working two-thirds the salary I had before…he’s full of s–t,” she railed.
“What do you say to a guy who shoots off at the mouth and has no intention of delivering…if he’s pulls another one I’m going to expose him,” Stewart wrote.
When Mulleady asked whom Stewart would expose Shkreli to, she responded: “It won’t matter – investors. He’s a scam artist. He’s already racking up bills…he won’t pay anywhere near what he has promised, if at all. It’s his MO…he’s mentally unstable.”
Shkreli is on trial for allegedly lying about MSMB’s finances in order to lure investors — and lying to conceal devastating trading losses from them.
Shkreli then allegedly paid investors back with money he stole from another company he founded, Retrophin, in what the feds are calling an $11 million Ponzi scheme.
Stewart, who delivered her second day of testimony Friday, recalled for jurors the days after MSMB “imploded” on Feb. 1, 2011, as a result of a bad investment Shkreli made, costing the firm millions.
“It was like somebody had died,” Stewart testified as she described the days following Feb. 1, 2011.
“It became deathly quiet. It was stillness, eerie. Things were quiet somber in a funereal way. Something was wrong but there was no talk, so I didn’t know what was going on,” she said.
“Martin told me that he shorted the [Orexigen Therapeutics] shares and that he owed Bank of America Merrill Lynch $10 million,” she told jurors.
A day after the firm “imploded,” Stewart sent Shkreli an email at 5:22 p.m. saying, “I know things must seem bleak to you but try not to be too disheartened…I think the mistake was one anybody could have made.
“You’re the smartest, most ambitious/driven and also kindest person I have ever met.”
Stewart told the court she sent the compassionate email because “I felt bad for him.”
“Normally he was full of swagger and larger than life … he seemed beaten. And I felt grateful to him for giving me a job and I wanted to cheer him up,” she said.