Archegos Capital Management’s founder guilty of 10 of 11 criminal counts over investment firm that collapsed in 2021
Sung Kook “Bill” Hwang, the Archegos Capital Management founder, was convicted of fraud and other charges by a jury in Manhattan federal court on Wednesday. Prosecutors at a criminal trial had accused him of market manipulation ahead of the 2021 collapse of his $36bn private investment firm.
The jury, which began deliberations on Tuesday, found Hwang guilty on 10 of 11 criminal counts and Patrick Halligan, his Archegos deputy and co-defendant, guilty on all three counts he faced. Hwang and Halligan sat flanked by their lawyers as the verdict was read by a soft-spoken foreperson.
The US district judge Alvin Hellerstein set the sentencing for 28 October. Both men will remain free on bail.
The Archegos meltdown sent shockwaves across Wall Street and drew regulatory scrutiny on three continents. Prosecutors have said Hwang and Halligan lied to banks in order to obtain billions of dollars that they used to artificially pump up the stock prices of multiple publicly traded companies. The trial began in May.
Still, two billionaires in a few months being convicted of fraud by New York juries shows at least a little promise.
Being convicted is great. I just doubt theres a punishment, the conviction is just meaningless. A label that does not affect billionaires.
It doesn’t say what it is, but I am guessing that there is a minimum sentence here that will apply no matter what. The maximum is 20 years per count according to the article, so I’m guessing even the minimum won’t be great.
The question is whether or not he’ll be able to appeal it. Same with Trump.