A jury in New York has convicted Wall Street investor Sung Kook ‘Bill’ Hwang of fraud and market manipulation. This verdict comes three years after the collapse of his investment fund, Archegos Capital Management, which resulted in billions of dollars in losses for major banks.
Prosecutors accused Hwang of deceiving lenders while secretly building substantial bets on various companies. When Archegos failed to repay the banks, it triggered a widespread sell-off of stocks, leading to the fund’s downfall.
Hwang’s deputy at Archegos, Patrick Halligan, was also found guilty on three counts. Sentencing for both men is scheduled for October 28, with both remaining free on bail.
Mary Mulligan, Halligan’s lawyer, stated, “While we respect the jury, we intend to appeal and believe our client will be exonerated.” Hwang’s lawyer, Barry Berke, did not respond immediately to media inquiries.
US attorney Damian Williams emphasized that Hwang and Halligan misrepresented Archegos’s positions in several companies, inflating a $1.5 billion portfolio to an astonishing $36 billion. Hwang had pleaded not guilty to one count of racketeering conspiracy, three counts of fraud, and seven counts of market manipulation. Halligan also pleaded not guilty to racketeering conspiracy and fraud charges.
