Billionaire Sung Kook ‘Bill’ Hwang convicted of fraud by New York jury

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Sung Kook “Bill” Hwang, nan Archegos Capital Management founder, was convicted of fraud and different charges by a assemblage successful Manhattan national tribunal connected Wednesday. Prosecutors astatine a criminal proceedings had accused him of marketplace manipulation up of nan 2021 illness of his $36bn backstage finance firm.

The jury, which began deliberations connected Tuesday, recovered Hwang blameworthy connected 10 of 11 criminal counts and Patrick Halligan, his Archegos lawman and co-defendant, blameworthy connected each 3 counts he faced. Hwang and Halligan sat flanked by their lawyers arsenic nan verdict was publication by a soft-spoken foreperson.

Alvin Hellerstein, nan US territory judge, group nan sentencing for 28 October. Both men will stay free connected bail.

The Archegos meltdown sent daze waves crossed Wall Street and drew regulatory scrutiny connected 3 continents. Prosecutors person said Hwang and Halligan lied to banks successful bid to get billions of dollars that they utilized to artificially pump up nan banal prices of aggregate publically traded companies. The proceedings began successful May.

Hwang, 60, had pleaded not blameworthy to 1 count of racketeering conspiracy, 3 counts of fraud and 7 counts of marketplace manipulation. Hwang was acquitted connected a marketplace manipulation complaint related to a Chinese online video company, iQIYI.

Halligan, 47, had pleaded not blameworthy to 1 count of racketeering conspiracy and 2 counts of fraud. Halligan was nan main financial serviceman astatine Archegos.

They now look maximum sentences of 20 years successful situation connected each complaint for which they were convicted, though immoderate condemnation would apt beryllium overmuch little and would beryllium imposed by nan judge based connected a scope of factors.

The proceedings centered connected nan implosion of Hwang‘s family agency Archegos, which inflicted $10bn successful losses astatine world banks and, according to prosecutors, and caused much than $100bn successful shareholder losses astatine companies successful its portfolio. Prosecutors said Hwang‘s actions harmed US financial markets arsenic good arsenic mean investors, causing important losses to banks, marketplace participants and Archegos employees.

Hwang secretly amassed outsized stakes successful aggregate companies without really holding their stock, according to prosecutors. Hwang lied to banks astir nan size of nan derivative positions of Archegos successful bid to get billions of dollars that he and his deputies past utilized to artificially inflate nan underlying stocks, prosecutors said.
Halligan was accused by prosecutors of lying to banks and enabling nan criminal scheme.

During closing arguments, adjunct US lawyer Andrew Thomas told jurors: “By 2021, nan defendants’ lies and manipulation had ensnared astir a twelve stocks and half of Wall Street successful a $100 cardinal fraud, a fraud that came crashing down successful a matter of days.”

Hwang’s defense squad painted nan indictment arsenic nan “most fierce unfastened marketplace manipulation case” ever brought by US prosecutors. Hwang’s lawyer Barry Berke told jurors successful his closing statement that prosecutors criminalized fierce but ineligible trading methods.

Archegos caput trader, William Tomita, and Scott Becker, nan main consequence officer, testified arsenic prosecution witnesses aft pleading blameworthy to related charges and agreeing to cooperate successful nan case.

According to nan US attorney’s agency for nan confederate territory of New York, which brought nan case, Hwang’s positions eclipsed those of nan companies’ largest investors, driving up banal prices. At its peak, prosecutors said Archegos had $36bn successful assets and $160bn of vulnerability to equities.

When banal prices fell successful March 2021, nan banks demanded further deposits, which Archegos could not make. The banks past sold nan stocks backing Hwang’s swaps, wiping retired an alleged $100bn worth for shareholders and billions astatine nan banks, including $5.5bn for Credit Suisse, now portion of UBS, and $2.9bn for Nomura Holdings.

Source theguardian