Stock Groups

Archegos owner Bill Hwang and former CFO Halligan charged with fraud

[ad_1]

Archegos Capital Management founder Bill Hwang was arrested along with Patrick Halligan, its former chief finance officer. They were involved in the implosion last year of their family office.

According to the statement of a U.S. District Court, they are scheduled to appear at Manhattan Federal Court on Wednesday. They are facing charges with wire fraud, securities fraud, and racketeering conspiracy.

According to court papers, Hwang used his fortune to influence markets and commit fraud. This scheme had devastating consequences. According to court documents, Hwang’s wealth increased from $1.5 billion up to over $35 billion in a period of approximately one year.

It caused billions of dollars in losses to banks and employees at Archegos when the family office went bust.

Indictment documents state that Hwang used leverage to boost their market positions. These increased to $160 billion. Hwang used derivative securities with no disclosure requirements that helped shield Archegos market position. Investors were not aware that Archegos was controlling the trading of certain companies.

Archegos could not continue supporting its positions after the stock prices plummeted in March 2021, and the scheme was declared dead.

The story is still in development. Stay tuned for new updates.

[ad_2]