Hwang and Halligan were charged with 11 criminal counts, including racketeering conspiracy, market manipulation, wire fraud and securities fraud. The alleged crimes artificially inflated Archegos’s portfolio from US$1.5 billion ($2.06 billion) to US$35 billion in one year, according to a statement from Manhattan US Attorney Damian Williams.
US prosecutors charged Archegos Capital Management founder Bill Hwang and Chief Financial Officer Patrick Halligan with fraud, in the latest fallout from the spectacular collapse of the family office.
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.
