NEW YORK (Reuters) – The previous chief threat officer of Archegos Capital Administration has partially settled U.S. Securities and Alternate Fee claims he aided a fraud at Invoice Hwang’s personal funding agency that left Wall Road banks with $10 billion in losses, a Wednesday court docket submitting exhibits.

Scott Becker, who’s cooperating with U.S. prosecutors in a associated prison case in opposition to Hwang, agreed to not commit additional violations of securities legal guidelines.

A decide will resolve later whether or not Becker ought to pay civil fines, disgorge unlawful positive aspects and be barred from senior administration positions and directorships at public firms.

Hwang and former Archegos Chief Monetary Officer Patrick Halligan pleaded not responsible final week to expenses they misled banks with a purpose to borrow cash, which was then guess on shares via securities often known as complete return swaps.

Archegos, as soon as with $36 billion in property, collapsed final 12 months when it was caught brief on its trades, sparking a hearth sale in shares that brought on huge losses for Credit score Suisse (SIX:) Group AG, Nomura Holdings (NYSE:) Inc and others.

Becker and former Archegos head dealer William Tomita pleaded responsible and are cooperating with prosecutors in a associated U.S. Division of Justice prison case.

In getting into his plea on April 21, Becker mentioned he misled banks to induce them to increase Archegos’ buying and selling capability, to dissuade them from liquidating positions in Archegos’ account, and to not take different steps that may damage Archegos’ portfolio.

“And once you did this stuff, do you know that what you had been doing was incorrect and unlawful?” U.S. District Decide Laura Taylor Swain requested him.

“Sure,” Becker responded.

The case is SEC v. Hwang et al, U.S. District Courtroom, Southern District of New York, No. 22-03402.