A jury in New York has found Wall Street investor Sung Kook ‘Bill’ Hwang guilty of fraud and market manipulation. Hwang was accused of lying to lenders while secretly making large bets on several companies, leading to the collapse of Archegos Capital Management. His deputy, Patrick Halligan, was also found guilty on the three counts he faced.
The collapse of Archegos resulted in a mass sell-off of stocks and prompted the fund’s downfall. Despite the guilty verdict, both Hwang and Halligan will remain free on bail until their sentencing on 28 October. Hwang’s lawyer plans to appeal the decision, while the US attorney involved in the case expressed that the defendants fraudulently inflated a $1.5 billion portfolio into a $36 billion one by manipulating key financial metrics.
Prosecutors argued that Hwang and Halligan misrepresented Archegos’s positions and creditworthiness to investment banks. Hwang denied one count of racketeering conspiracy, three counts of fraud, and seven counts of market manipulation. Meanwhile, Halligan pleaded not guilty to one count of racketeering conspiracy and two counts of fraud, signaling a complex legal battle ahead as they continue to deny the charges brought against them.
