A former employee of "pharma bro" Martin Shkreli's hedge fund, during an online chat with a co-worker in 2011, called him "mentally unstable," "a scam artist," and threatened that she would "expose him" and his many lies to investors about the fund's financial health.
'"I'm a bit short on belief here," Caroline Stewart wrote in an AIM chat with MSMB Capital executive Kevin Mulleady in the early summer of 2011, when she was working as a stock analyst at that hedge fund.
"I'm done trusting Martin. I can't believe a word that comes out of his mouth,' Stewart wrote, according to a transcript of that chat read aloud to jurors at Shkreli's securities fraud trial in Brooklyn, New York, federal court.
"If he f---s me over with respect to money one more time, I'm going to expose him," Stewart wrote Mulleady.
She was referring to Shkreli allegedly repeatedly shorting her on what he owed her on salary, paying her irregularly, and then not paying her when he promised.
"What do you say to a guy who shoots off at the mouth and has no intention of delivering," she wrote. "He 'a scam artist ... I can't just deal with somebody who lies all the time."
At the time, Stewart said, Shkreli was pitching investors to get them to place money with him, and in the process of starting up a new drug company, Retrophin.
Prosecutors accuse Shkreli of defrauding investors at his hedge funds by lying to them about their performance, which in contrast to his sunny claims, was poor. They also charge him with looting Retrophin of stock to repay a number of those allegedly ripped-off investors.
Shkreli, 34, denies the charges.
Stewart later testified, when asked by Shkreli's lawyer why she thought he was "mentally unstable," that she said that because, "In my opinion it's crazy to lie so much, particularly about things that are easily uncovered."
Stewart's lengthy diatribe online came about four months or so after she said MSMB Capital "imploded" from a short sale trade of Orexigen Therapeutics stock that left Shkreli's hedge fund owing Bank of America/Merrill Lynch $10 million, according to what he had told her.