Shkreli's Lawyer Calls Him ‘Strange', in Surreal Opening of Case

When his debt for the trading loss came due, "he stole money from MSMB Healthcare" to pay the debt, which the health care fund did not owe, Mr. Srinivasan said. Mr. Shkreli then told investors that he was shutting down the two funds, and told them they could have stock in Retrophin or cash for their shares.

Those who wanted cash could not get it and threatened to sue, he said, and that is when Mr. Shkreli arranged for Retrophin to "pay off" the MSMB investors.

"Retrophin owed these investors nothing -- the defendant owed these debts," Mr. Srinivasan said. When accountants told him to stop, Mr. Shkreli arranged to hire the investors as consultants, a sham, the prosecutor said.

Investors may have made their money back, Mr. Srinivasan said, but Mr. Shkreli still committed fraud.

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Mr. Brafman also sometimes described his client in negative terms, telling jurors that "joining team Shkreli comes with a lot of aggravation."

Still Mr. Shkreli, who had sat through the government's statement often rolling his eyes and making faces, sat straight up, smiling, looking like he was watching a terrific movie when Mr. Brafman ripped through his opening statement.

When the lawyer returned to the defense table, Mr. Shkreli stood, put his arm around him, and patted him on the shoulder.

"Buckle up your seatbelts, ladies and gentleman; you're in for a good ride," Mr. Brafman told the jury.