From Investing.com: 2024-11-15 23:45:30

Bill Hwang, founder of Archegos Capital Management, faces a proposed 21-year prison sentence for a market manipulation scheme that led to a $36 billion loss. Prosecutors say he lied to banks about his firm’s portfolio to make risky bets on media and tech stocks, causing big losses for lenders like Credit Suisse.

Hwang, 60, was convicted in July on 10 criminal charges including securities and wire fraud. His massive exposure to stocks through total return swaps led to Archegos’ collapse in March 2021. This resulted in substantial losses for banks such as Credit Suisse and Nomura Holdings.

Hwang’s lawyers argue he should not receive prison time, claiming prosecutors failed to prove his lies caused bank losses. They also cite his age, health issues, philanthropy, and low risk of reoffending as reasons to avoid incarceration. Hwang’s co-defendant, former CFO Patrick Halligan, faces sentencing in 2025.



Read more at Investing.com: Archegos’ Bill Hwang deserves 21 years in prison, US says By Reuters