Archegos’ Bill Hwang deserves 21 years in jail, US says

NEW YORK, – Bill Hwang, the founding father of Archegos Capital Management, ought to spend 21 years in jail for operating a market manipulation scheme that worn out his $36 billion agency and value its lenders greater than $10 billion, federal prosecutors mentioned on Friday.

Hwang, 60, faces a scheduled Nov. 20 sentencing in Manhattan federal court docket after being convicted in July on 10 legal expenses together with securities and wire fraud and racketeering conspiracy.

Prosecutors accused Hwang of mendacity to banks about Archegos’ portfolio so he might borrow cash aggressively and make concentrated bets on media and expertise shares comparable to ViacomCBS, by way of so-called complete return swaps.

Hwang amassed $160 billion of publicity to shares, however was unable to satisfy margin calls as costs started falling.

This led to Archegos’ demise in March 2021 and prompted large losses for banks comparable to Credit Suisse, now a part of UBS , and Nomura Holdings as varied banks unloaded shares backing Hwang’s swaps.

Hwang didn’t testify at his two-month trial. He is predicted to enchantment his conviction.

On Nov. 8, Hwang’s attorneys mentioned he ought to obtain no jail time.

The attorneys mentioned prosecutors didn’t and can’t show Hwang’s alleged lies prompted losses for banks. They additionally mentioned Hwang’s age, heart problems, philanthropy and low danger of recidivism weighed in opposition to placing him behind bars.

Hwang’s co-defendant, former Archegos Chief Financial Officer Patrick Halligan, was convicted on the similar trial on three legal expenses. His sentencing is scheduled for Jan. 27, 2025.

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