Bill Hwang appeared in court on April 27 but was released on bail. (Photo: Bloomberg)
A year after Hwang’s Archegos financial management company collapsed, US prosecutors have released the results of a full investigation into what went on in the company, revealing the size of the transactions Hwang made. and how this investor bypassed a series of big banks and management.
According to the indictment announced on April 27, Hwang Patrick Halligan – the chief financial officer of Archegos, was charged with 11 counts. The U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission also filed civil complaints against the two.
If convicted of all counts, Hwang faces up to 380 years in prison. During the first trial in Manhattan on April 27, Hwang and Halligan denied the charges and were released on bail.
The collapse of Archegos – a family-owned company virtually unknown on Wall Street – exposes serious gaps in the way big banks manage risk, as well as in the way authorities oversee Wall Street. A year after the shocking crash, Credit Suisse AG and other names continue to have to deal with the consequences.
Hwang is said to have inflated the value of his portfolio from $1.5 billion to over $35 billion in one year, and scaled Archegos’ market position to $160 billion at its peak. .
Prosecutors also accused Hwang of connecting investors to an investment fund of his friends in order to maximize market impact. The fund manager is Tao Li, director of Teng Yue Partners. Li has not been charged with any crime.
Speaking at a news conference in New York on the morning of April 27, US Deputy Attorney General Lisa Monaco said that the cases of Hwang, 57, and Halligan, 45, “really typify and represent their focus. me in an effort to hold individuals accountable in the area of corporate crime.”
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