Archegos Founder Bill Hwang Hit With Criminal Charges https://www.bloomberg.com/news/arti...it-with-criminal-charges-in-massive-fund-rout Hwang, CFO charged with fraud after collapse of family office Prosecutors allege market manipulation and false statements U.S. prosecutors charged Archegos Capital Management founder Bill Hwang and Chief Financial Officer Patrick Halligan with fraud, in the latest fallout from the spectacular collapse of the family office. Federal authorities said Hwang used Archegos as an “instrument of market manipulation and fraud,” causing billions of dollars in losses for banks, financial market investors and its own employees. Hwang was arrested by federal agents early Wednesday. Hwang and Halligan were charged with racketeering conspiracy, securities fraud, and wire fraud offenses. The alleged fraud artificially inflated Archegos’s portfolio from $1.5 billion to $35 billion in one year, according to a statement from Manhattan U.S. Attorney Damian Williams. Charging documents said Archegos’ market positions ballooned to $160 billion at one point through a deceptive trading tactic that hid their true size from the market. The positions were inflated with the use of borrowed money and derivative securities that required no public reporting. When the market turned against the positions in March 2021, Hwang directed the fund’s traders to go on a buying spree in an attempt to prop up their price, federal prosecutors charged. The men used Archegos to defraud market participants by “manipulating, controlling and artificially affecting the market for certain securities in Archegos’s portfolio,” according to the indictment. They also “repeatedly made materially false and misleading statements about Archegos’s portfolio of securities to numerous leading global investment banks and brokerages,” which encouraged them to trade with and extend credit to Archegos, the government said. Read More: Bill Hwang’s Huge, Brash Bet to Corner a U.S. Bank Stock
wowza "........ alleged fraud artificially inflated Archegos’s portfolio from $1.5 billion to $35 billion in one year"
Wow. Given the $ amounts in this case I wonder what the sentencing will be. I am guessing he will be locked up for many years.
LMAO 150 years for former head of Nasdaq - different rules. Canuckleheads should stick to what they know best. Icefishing.
Start with presumption of innocence. Many people believe that if the government brings charges the defendant must be guilty. The government tries to get those kind of people selected for the jury.
re: plea bargains against the elite American prosecutors are rated by how many convictions they get. They pile on numerous and heavy charges while it may have little expectations of succeeding will result in long sentences. Their hope is that the defendant will accept a plea deal of guilt to a lesser charge and to a lesser prison sentence. It raises the prosecutor's conviction rate and saves the government the cost of a lengthy trial. The defendant may accept a plea deal, even if innocent in order to avoid the possibility of being found guilty at trial of the far heavier charges and serving decades long prison sentences. Innocent people freq Plea deals used in this manner are a disgrace to the American system of justice. It shows time and again the heavy handiness and the coercive nature of government in the US.
No surprise here. Considering his past criminal record, were we to assume his 15 billions in just 10 years really had nothing to do with further illegal shenanigans? Once an insider-trading crook, always. Of course, HIS version of the story was he simply kept buying under-valued calls all the way up the Nasdaq.
Your statement is too general. Does that mean plea bargaining works the same way in all free countries and with the same outcomes?