NEW YORK – A jury in New York has reached a verdict in the case of Wall Street investor, Sung Kook ‘Bill’ Hwang, finding him guilty of fraud and market manipulation. The trial stems from the collapse of Archegos Capital Management, which occurred three years ago.
Hwang was accused of deceiving lenders while secretly building significant positions in various companies. The resulting inability of Archegos to repay its debts led to a widespread stock sell-off and the fund’s eventual downfall. In addition to Hwang, his deputy and co-defendant, Patrick Halligan, also faced charges and was found guilty on all counts.
According to prosecutors, both Hwang and Halligan misled banks about Archegos’ financial standing, leading to an inflated portfolio value of $36 billion from an original $1.5 billion. The sentencing for both individuals is scheduled for October 28, with them being allowed to remain out on bail during this period.
Following the verdict, Halligan’s lawyer expressed plans to appeal the decision, expressing confidence in his client’s exoneration. However, Hwang’s legal representation did not immediately respond to requests for comments. US Attorney Damian Williams emphasized the severity of the actions, stating the defendants had provided false information that significantly impacted the firm’s credibility.
Hwang had pleaded not guilty to multiple charges, including racketeering conspiracy, fraud, and market manipulation, while Halligan had also entered a not guilty plea to charges of racketeering conspiracy and fraud. The outcome of this trial underscores the consequences of deceptive financial practices in the investment world and serves as a warning to others engaging in similar activities.