The Los Angeles Post
U.S. World Business Lifestyle
Today: March 18, 2025
Today: March 18, 2025

Archegos' Bill Hwang deserves 21 years in prison, US says

Sung Kook (Bill) Hwang, the founder and head of the private investment firm Archegos, arrives at the Manhattan Federal Courthouse in New York City
November 16, 2024
Jonathan Stempel - Reuters

By Jonathan Stempel

NEW YORK (Reuters) -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.

In a late night court filing, prosecutors from the U.S. Attorney's office in Manhattan also asked that Hwang be subjected to a $12.35 billion forfeiture and to pay restitution to victims at his scheduled sentencing on Wednesday.

A 21-year term would be unusually long for a U.S. white-collar crime case, and just four years shorter than FTX cryptocurrency exchange founder Sam Bankman-Fried received in March after being convicted of stealing billions of dollars from customers.

Prosecutors called Hwang an "unrepentant recidivist" who appears to have "judged himself blameless."

They cited a 2012 guilty plea to wire fraud by Hwang's former hedge fund Tiger Asia Management, and a Nov. 8 request by Hwang's lawyers that their 60-year-old client spend no time in prison for his activities at Archegos.

"Bill Hwang used his personal hedge fund to commit a fraud that altered the American stock market and visited billions of dollars in losses on his trading counterparties," prosecutors said. "He pursued that fraud even after previously being ordered not to commit securities fraud. And even now he has no remorse."

A significant sentence, prosecutors added, would "signal to even the most hubristic investors that their grand schemes will be met with serious sentences."

Lawyers for Hwang did not immediately respond to requests for comment outside business hours.

Hwang was convicted in July on 10 criminal charges including securities and wire fraud and racketeering conspiracy.

Prosecutors accused him 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 could not 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.

In requesting that he serve no prison time, Hwang's lawyers said prosecutors did not and could not prove that Hwang's alleged lies caused losses for banks. They said Hwang's age, cardiovascular disease, philanthropy and low risk of recidivism also 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.

(Reporting by Jonathan Stempel in New York; Editing by William Mallard)

Related Articles

Yoga business founder pleads guilty to tax charge in New York City The Oklahoma Supreme Court denies a request to reconsider Tulsa Race Massacre lawsuit dismissal TD Bank ordered to pay $28 million by US CFPB for misreporting consumer credit data Jewelry seized from Polish inmates of Nazi German concentration camps is returned to families
Share This

Popular

Business|Political|Technology|US

Automakers, tech industry urge Trump to speed self-driving car deployment

Automakers, tech industry urge Trump to speed self-driving car deployment
Business|Economy|Europe|Health|Political

Widely used drugs on US imports list from Europe

Widely used drugs on US imports list from Europe
Americas|Business|Economy|Political|World

US says ready to confer with China, Canada on WTO disputes

US says ready to confer with China, Canada on WTO disputes
Business|Europe|Fashion and Beauty|Travel

Air France renews first-class suite in battle for high-rollers

Air France renews first-class suite in battle for high-rollers

Economy

Economy|Health|Science|US

US births rose last year, but experts don't see it as a trend

US births rose last year, but experts don't see it as a trend
Business|Economy|Food|Political|US

Trump is claiming credit for plummeting egg costs. So why havenโ€™t you noticed lower prices?

Trump is claiming credit for plummeting egg costs. So why havenโ€™t you noticed lower prices?
Business|Economy|Finance|US

US manufacturing output accelerates in February

US manufacturing output accelerates in February
Business|Economy|Finance|Stock Markets|US

Middle East tensions, tariff jitters fuel gold's record rally

Middle East tensions, tariff jitters fuel gold's record rally

Access this article for free.

Already have an account? Sign In