NEW YORK, NY – A Wall Street investor, Sung Kook ‘Bill’ Hwang, has been found guilty of fraud and market manipulation by a jury in New York. This verdict comes three years after his investment fund, Archegos Capital Management, failed, leading to significant losses for multiple major banks.

Prosecutors alleged that Hwang misled lenders by secretly making substantial bets on various companies. When Archegos could not repay the banks, a chain reaction occurred, triggering a massive sell-off of stocks and the eventual collapse of the fund. Hwang’s deputy at Archegos, Patrick Halligan, was also convicted on the three charges he faced.

Both Hwang and Halligan are out on bail and are scheduled for sentencing on October 28. While Halligan’s lawyer, Mary Mulligan, expressed intention to appeal, Hwang’s attorney, Barry Berke, did not immediately respond to inquiries.

US attorney Damian Williams highlighted that Hwang and Halligan falsified information about Archegos’s positions and other critical metrics, leading to a fraudulent inflation of the firm’s portfolio from $1.5 billion to $36 billion. Hwang pleaded not guilty to charges including racketeering conspiracy, fraud, and market manipulation, while Halligan denied allegations of racketeering conspiracy and fraud.

The case sheds light on the repercussions of deceptive practices in the financial sector and the importance of transparency and integrity in investment dealings. The outcome of the trial emphasizes the legal consequences that individuals may face for engaging in fraudulent activities that harm investors and financial institutions.

As the industry assesses the aftermath of the Archegos saga, regulators and stakeholders may seek to implement stricter oversight and compliance measures to prevent similar occurrences in the future. The convictions of Hwang and Halligan serve as a stark reminder of the accountability that individuals, even those in powerful positions, must uphold in the financial markets.