Archegos Owner Bill Hwang, CFO Arrested For Market Manipulation And Fraud

Close to a year after the US Department of Justice opened an investigation into the collapse of hedge fund Archegos Capital Management, a New York court issued an indictment and ordered the arrest of the fund’s owner Bill Hwang and CFO Patrick Halligan among others.

Federal prosecutors filed a complaint against the former top honchos of the failed hedge fund related to the latter’s US$10 billion collapse last year.

According to the authorities, the defendants used the firm as an “instrument of market manipulation and fraud,” as well as inflated its portfolio to US$35 billion from US$1.5 billion in a single year.

Hwang’s lawyer confirmed the arrest but declined to comment when asked while Halligan’s lawyer claimed her client “is innocent and will be exonerated.”

The US Securities and Exchange Commission also filed a separate civil complaint against Hwang, Halligan, and two other executives of the hedge fund. The agency alleges the defendants coopted a “fraudulent scheme” to bloat the firm’s “assets under management from around $4 billion to over $36 billion in just under six months.”

Around March 2021, the fund defaulted on its margin calls causing several major global banks to pull out their investments for a total US$30 billion quick selloff. The event caused a sharp decline in Wall Street’s indices. Soon after, the hedge fund prepared to file for bankruptcy.

Hwang and Halligan are expected to appear before the Manhattan court within the day.


Information for this briefing was found via Bloomberg, The New York Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Tiger Cub Takes Over: Financial Media Consumed by Archegos Information Vacuum

The buzz started in earnest on Saturday, and was really humming by Sunday, but the...

Wednesday, March 31, 2021, 10:08:34 PM

Archegos Fallout Climbs To Over $10 Billion

UBS announced early Tuesday morning that they lost $861 million due to Archegos’s massive blowup...

Wednesday, April 28, 2021, 11:02:00 AM

SEC Opens Investigation Into Archegos After Massive Wall Street Blowup

Following the massive blowup of Archegos Capital Management that rocked Wall Street, the US Securities...

Thursday, April 1, 2021, 10:31:00 AM

Cathie Wood, ARK ETF Manager, Says She Was in Business with Hwang

This evening Tesla (NASDAQ: TSLA) skeptics have found themselves with a juicy connection to ponder...

Friday, May 7, 2021, 07:15:08 PM

GSX Techedu And The Wizard Of Archegos

In May of 2020, short seller Muddy Waters had done the dilligence to show that...

Saturday, April 3, 2021, 09:00:00 AM