Saturday, July 20, 2024

Archigos founder Bill Hwang was found guilty of fraud

image source, Good pictures

image caption, The guilty verdict comes three years after the collapse of Archigos Capital Management

  • author, Joao da Silva
  • stock, Business Correspondent

A jury in New York has found Wall Street investor Sung Kook ‘Bill’ Hwang guilty of fraud and market manipulation.

Prosecutors allege that Hwang lied to lenders as he secretly piled up large bets at several companies.

When Archigos couldn’t repay the banks, it prompted a massive selloff of shares and the fund collapsed.

Patrick Halligan, Hwang’s deputy and co-defendant in Archigos, was also found guilty of three counts he faced.

Sentencing has been announced on October 28. Both will be released on bail.

“We respect the jury, we intend to appeal and we hope our client will be acquitted,” Halligan’s lawyer Mary Mulligan told BBC News.

Barry Berg, one of Hwang’s lawyers, did not immediately respond to the BBC’s request for comment.

“Huang and Halligan lied about Archigos’ positions in these companies, and every important metric investment banks use in determining a company’s creditworthiness,” U.S. Attorney Damian Williams said after the verdicts.

“By doing so, Hwang and Halligan were able to fraudulently inflate a $1.5 billion (£1.17bn) portfolio into a $36 billion portfolio,” he added.

Hwang pleaded not guilty to one count of racketeering conspiracy, three counts of fraud and seven counts of market manipulation.

Halligan pleaded not guilty to one count of racketeering conspiracy and two counts of racketeering.

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