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Archegos' Bill Hwang deserves 21 years in prison, US says
ARCHEGOS-FRAUD/ (URGENT, PIX):Archegos' Bill Hwang deserves 21 years in prison, US says
By Jonathan Stempel
NEW YORK, - Bill Hwang, the founder of Archegos Capital Management, should spend 21 years in prison for running a market manipulation scheme that wiped out his $36 billion firm and cost its lenders more than $10 billion, federal prosecutors said on Friday.
Hwang, 60, faces a scheduled Nov. 20 sentencing in Manhattan federal court after being convicted in July on 10 criminal charges including securities and wire fraud and racketeering conspiracy.
Prosecutors accused Hwang of lying to banks about Archegos' portfolio so he could borrow money aggressively and make concentrated bets on media and technology stocks such as ViacomCBS, through so-called total return swaps.
Hwang amassed $160 billion of exposure to stocks, but was unable to meet margin calls as prices began falling.
This led to Archegos' demise in March 2021 and caused big losses for banks such as Credit Suisse, now part of UBS , and Nomura Holdings as various banks unloaded stocks backing Hwang's swaps.
Hwang did not testify at his two-month trial. He is expected to appeal his conviction.
On Nov. 8, Hwang's lawyers said he should receive no prison time.
The lawyers said prosecutors did not and cannot prove Hwang's alleged lies caused losses for banks. They also said Hwang's age, cardiovascular disease, philanthropy and low risk of recidivism weighed against putting him behind bars.
Hwang's co-defendant, former Archegos Chief Financial Officer Patrick Halligan, was convicted at the same trial on three criminal charges. His sentencing is scheduled for Jan. 27, 2025.
This article was generated from an automated news agency feed without modifications to text.
