Hwang was charged with racketeering and other counts.
Federal prosecutors in New York on Wednesday announced criminal charges against the founder of a private investment firm and its chief financial officer for alleged “manipulative trading” and “deceptive conduct” that led to a multibillion-dollar fraud.
Bill Hwang, the founder of Archegos Capital Management, and Patrick Halligan, the CFO, were charged with racketeering conspiracy, securities fraud and wire fraud.
According to the indictment, Hwang and Halligan “corrupted the operations and activities of the family office known as Archegos” and used it “as an instrument of market manipulation and fraud.” Family offices serve high-net-worth individuals and families.
The consequences were far-reaching, prosecutors said.
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The stock prices of a number of companies were manipulated, employees’ savings were gambled and different banks were left with billions of dollars in losses. UBS alone lost $861 million, according to the indictment.
The criminal charges followed the spectacular implosion, in March 2021, of Archegos, which lost billions in mere days. Prosecutors said Hwang traded in a way that hid the true size of his positions from the rest of the investing public.
The alleged criminal conduct pumped Archegos’ portfolio – Hwang’s personal fortune – from $1.5 billion to $35 billion in one year, according to prosecutors.
Credit: abcnews.go.com /