A jury in New York has found the Wall Street investor, Sung Kook ‘Bill’ Hwang, guilty of fraud and market manipulation. It comes three years after the failure of his investment fund Archegos Capital Management, which caused billions of dollars in losses for several major banks.
Prosecutors accused Hwang of lying to lenders as he secretly amassed large bets on several companies. When Archegos was unable to repay the banks, it prompted a mass sell-off of stocks and the fund collapsed.
Hwang's deputy at Archegos and co-defendant, Patrick Halligan, was also found guilty on the three counts he faced. Sentencing has been scheduled for 28 October. Both men will remain free on bail.
“While we respect the jury, we intend to appeal and believe our client will be exonerated,” Mary Mulligan, Halligan's lawyer told BBC News. One of Hwang's lawyers, Barry Berke, did not immediately respond to a request for comment from the BBC.
“Hwang and Halligan lied about Archegos’s positions in these companies and just about every other materially important metric investment banks would use in determining the firm’s creditworthiness,” US attorney Damian Williams said after the verdicts.
“In 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 had pleaded not guilty to one count of racketeering conspiracy, three counts of fraud and seven counts of market manipulation. Halligan had pleaded not guilty to one count of racketeering conspiracy and two counts of fraud.
— CutC by bbc.com
