Archegos Founder Bill Hwang Hit With Criminal Charges
https://www.bloomberg.com/news/arti...it-with-criminal-charges-in-massive-fund-rout
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
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
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
