Search Mark
Home / Current Affairs

Prosecutors Claim Bill Hwang’s Archegos Was Built on Lies


Today’s News 

Manhattan Federal Court Opens Trial on Alleged Market Manipulation by Archegos Founder Bill Hwang. 

Bill Hwang, founder of Archegos Capital Management, exits Manhattan federal court after the first day of his corruption trial on Monday, May 13, 2024 

Image Source: KARK
Bill Hwang, founder of Archegos Capital Management, exits Manhattan federal court after the first day of his corruption trial on Monday, May 13, 2024 
Image Source: KARK 

Sung Kook “Bill” Hwang’s trial began in Manhattan federal court, where he stands accused of deceiving Wall Street banks to obtain billions in funding, allegedly inflating stock prices.  

According to Assistant U.S. Attorney Alexandra Rothman, Hwang’s ambition to become a Wall Street legend drove him to manipulate the market, transforming Archegos into a criminal operation. She told the jury, “Bill Hwang was a billionaire and yet he risked nearly everything because he wanted more: more money, more success, more power.” Hwang’s attorney, Barry Berke, countered that his client invested heavily in companies he believed in, asserting, “The reason he did it was because he had the courage of his convictions.” 

Bill Hwang, Chief Executive Officer and founder of Archegos Capital Management, left, accompanied by attorney Barry Berke, arrives at federal court in New York, US. 

Image Source: New York Post
Bill Hwang, Chief Executive Officer and founder of Archegos Capital Management, left, accompanied by attorney Barry Berke, arrives at federal court in New York, US. 
Image Source: New York Post 
Former Archegos Chief Financial Officer, Patrick Halligan, departs the Manhattan federal courthouse in New York City, U.S. 

Image Source: Reuters
Former Archegos Chief Financial Officer, Patrick Halligan, departs the Manhattan federal courthouse in New York City, U.S. 
Image Source: Reuters 

The trial, watched closely on Wall Street, promises insights into how banks deal with high-risk clients. Hwang and Halligan, his former Chief Financial Officer, face charges of racketeering conspiracy. Hwang faces additional charges including fraud and market manipulation. Each charge carries a potential 20-year prison sentence. 

Prosecutors allege that Hwang used total return swaps to build large stakes in companies without directly owning shares, driving up stock prices. The collapse of Archegos in March 2021 caused over USD 100 billion in shareholder losses. William Tomita, Archegos’ head trader, and Scott Becker, Chief Risk Officer, have pleaded guilty and are expected to testify. 

During Monday’s testimony, Bryan Fairbanks, a former risk manager at UBS, stated, “All the information they had shared with us was made up.” Fairbanks’ testimony highlights the alleged deception by Archegos, which led to significant losses for UBS. 

Other News

Investors Flock to Real Estate Debt Amid Bank Pullback 

Major investment firms, including PGIM and LaSalle, are increasing investments in real estate debt as banks retreat. Despite industry challenges, lenders see potential for attractive returns amidst recovering valuations. 

U.S. Grants USD 120 Million for Chip Facility Expansion 

Federal officials award up to USD 120 million to Polar Semiconductor to expand its chip manufacturing facility in Minnesota, aiming to strengthen domestic semiconductor production and mitigate global supply chain risks. 

U.S. Proposes Anti-Money Laundering Rules for Fund Advisers 

New rules proposed by the SEC and FinCEN aim to combat money laundering by requiring fund advisers to verify customer identities. This comes to safeguard the financial system and address illicit finance risks. 

Share to

Current Affairs

Stellantis CEO Carlos Tavares Resigns Amid Slumping U.S. Sales

Today’s News Carlos Tavares, CEO of Stellantis (STLAM.MI), abruptly resigned on Sunday following a turbulent period for the automotive giant. The announcement comes just two months after the company issued a profit warning due to faltering sales in North America, which have led to a 40% drop in Stellantis’ market value this year.  The Stellantis […]

2024-12-2 | Current Affairs

Gold Rallies, Euro Plummets Amid Rising Global War Tensions

Gold is on track for its biggest weekly gain in nearly eight months, driven by escalating global tensions after Russia lowered its threshold for nuclear weapon usage and launched a hypersonic missile at Ukraine

2024-11-22 | Current Affairs

Nvidia's AI Demand Strong, Sales Growth Slows

Nvidia (NVDA.O) reported its slowest revenue growth forecast in seven quarters on Wednesday, falling short of sky-high investor expectations for the AI chipmaker, which has become the world’s most valuable semiconductor firm. 

2024-11-21 | Current Affairs