“Bill Hwang is entirely innocent of any wrongdoing; there is no evidence whatsoever that he committed any kind of crime, let alone the overblown allegations that pervade this indictment,” Lawrence S. Lustberg, Hwang’s lawyer, told CNN in a statement.<\/p>\n
“Pat Halligan is innocent and will be exonerated,” said his attorney, Mary Mulligan.
\nBoth Hwang and Halligan were arrested at their homes on Wednesday morning.<\/p>\n
<\/ul>\nProsecutors alleged in charging documents that Hwang, Halligan and their co-conspirators used Archegos “as an instrument of market manipulation and fraud, with far-reaching consequences for other participants in the United States securities markets, companies whose stock prices they manipulated, innocent employees of Archegos whose savings they gambled and the financial institutions left holding billions of dollars in losses.”
\nIn March 2021, previously little-known Archegos Capital Management imploded, setting off a fire sale in the shares of the companies the firm bet on. Wall Street banks that lent billions to Archegos, including UBS and Credit Suisse, suffered at least $10 billion in losses.
\nThe episode cast a spotlight on not only the risky leverage handed out to market players but hidden risks within the financial system linked to family offices, which do not need to make the same disclosures that other investment firms do.
\nAccording to prosecutors, Hwang duped investors into believing the prices of securities in the Archegos portfolio were the product of natural forces of supply and demand when, “in truth, they were the artificial product of Hwang’s manipulative trading and deceptive conduct that caused others to trade.”
\nWith Hwang’s “knowledge and approval,” prosecutors say Archegos executives repeatedly made “materially false and misleading” statements about Archegos’s portfolio of securities to leading investment banks and brokerages.
\nThese statements were designed to “fraudulently induce” counterparties into trading with and extending credit to Archegos, prosecutors said, and to “hide the true risk of doing business with Archegos.”
\nHwang and Halligan pleaded not guilty to the criminal charges filed against them, and were set to be released late Wednesday — Hwang on $100 million bond, secured by $5 million in cash and two properties, according to the U.S. Attorney’s Office of the Southern District of New York. Halligan was set to be released on $1 million bond and the surrender of his passport. Hwang said he has lost his passport, the office noted.
\n“This is exactly the kind of criminal case the Department of Justice should prioritize, and we will continue to do so,” said United States Deputy Attorney General Lisa Monaco. “This case reaffirms that when executives commit crimes, those crimes and that conduct affect companies and ordinary citizens alike.”<\/p>\n
<\/ul>\n“This kind of crime, the kind of crime that leaves a financial crater in its wake … jeopardizes pensions, savings, and jobs,” she said.
\nThis is not Hwang’s first run-in with authorities. In 2012, he pleaded guilty to one count of wire fraud after the SEC alleged that a hedge fund he founded, Tiger Asia Management, made nearly $17 million in illegal profits in a scheme involving Chinese bank stocks.
\nSource: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
New York (CNN)Federal agents arrested Archegos Capital Management founder Sung Kook “Bill” Hwang on Wednesday morning on fraud charges, roughly one year after the investment […]<\/p>\n","protected":false},"author":3,"featured_media":126887,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nBanks reveal huge losses from Archegos collapse - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/banks-reveal-huge-losses-from-archegos-collapse\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks reveal huge losses from Archegos collapse - Fin2me\" \/>\n<meta property=\"og:description\" content=\"New York (CNN)Federal agents arrested Archegos Capital Management founder Sung Kook “Bill” Hwang on Wednesday morning on fraud charges, roughly one year after the investment [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/business\/banks-reveal-huge-losses-from-archegos-collapse\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2022-04-27T23:50:13+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2022\/04\/Banks-reveal-huge-losses-from-Archegos-collapse.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/business\/banks-reveal-huge-losses-from-archegos-collapse\/\",\"url\":\"https:\/\/fin2me.com\/business\/banks-reveal-huge-losses-from-archegos-collapse\/\",\"name\":\"Banks reveal huge losses from Archegos collapse - 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