Archegos Founder Bill Hwang Sentenced to 18 Years in Jail US Fraud.
Former billionaire investor Sung Kook “Bill” Hwang has received an 18-year prison sentence following the downfall of Archegos Capital Management, which resulted in over $10 billion in losses for Wall Street banks.
On Wednesday, United States District Judge Alvin Hellerstein in Manhattan handed down the sentence after a jury found Hwang guilty in July on 10 counts, including wire fraud, securities fraud, and market manipulation.
“The scale of the losses caused by your actions surpasses any other case I have encountered,” Hellerstein remarked before delivering the sentence. The collapse of Archegos in March 2021 occurred in less than a week, leaving Wall Street and Hwang’s lenders in shock. The U.S. Attorney’s office in Manhattan had requested a 21-year sentence for Hwang, which is notably lengthy for a white-collar crime, along with a forfeiture of $12.35 billion and restitution for the victims.
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“This case is among a select few that can genuinely be termed a national disaster,” prosecutor Andrew Thomas stated during the sentencing hearing. Hellerstein did not make a decision on whether Hwang would need to forfeit funds or pay restitution, with the hearing set to continue on Thursday. Before sentencing, Hellerstein inquired of Hwang’s attorney, Dani James, how she believed Hwang compared to Sam Bankman-Fried, who was sentenced to 25 years in prison in March for defrauding $8 billion from users of the now-defunct FTX exchange. “Mr. Bankman-Fried was outright stealing from his customers,” James responded. “That’s not what occurred here.” Hwang requested no prison time, forfeiture, or restitution, and sought to remain free on bail while appealing his conviction. James argued that Hwang’s low risk of reoffending meant a lengthy prison sentence would be unnecessary.
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James stated that the idea he would engage in criminal activity in the future is simply untrue. Bankman-Fried maintains his innocence and is in the process of appealing his conviction. Hwang, 60, who was mentored by the late hedge-fund mogul Julian Robertson, established Archegos in New York as a family office in 2013, following the guilty plea of his previous hedge fund, Tiger Asia Management, for wire fraud related to insider trading.
Prosecutors allege that Hwang misled banks regarding Archegos’s portfolio to secure aggressive loans and make significant investments in media and technology stocks, including ViacomCBS, now known as Paramount Global. Hwang’s legal team has indicated that his net worth has dropped to “at most” $55.3 million. Hwang’s co-defendant, former Archegos Chief Financial Officer Patrick Halligan, was found guilty on three criminal charges during the same trial, with sentencing set for January 27. Both defendants opted not to testify during their two-month trial.
About Sung Kook “Bill” Hwang
Sung Kook “Bill” Hwang, born in South Korea in 1964, is a self-made investor who rose from humble beginnings to become a billionaire and a significant figure in global finance. After immigrating to the United States in 1982, he pursued education at the University of California, Los Angeles, earning a degree in economics, followed by an MBA from Carnegie Mellon University. Hwang’s financial career began at Hyundai Securities and Peregrine Investments, where he gained expertise in investment strategies.
Hwang’s big break came when he joined Tiger Management, a renowned hedge fund led by Julian Robertson, one of Wall Street’s legendary investors. Under Robertson’s mentorship, Hwang honed his skills, earning his reputation as a bold and visionary financier. In 2001, Hwang founded Tiger Asia Management, a hedge fund focusing on Asian markets. The firm became one of the largest of its kind, managing billions in assets and attracting significant attention for its savvy investments.
In 2013, Hwang transitioned to Archegos Capital Management, a family office aimed at managing his personal fortune. Archegos leveraged innovative strategies and substantial capital to invest heavily in technology and media, leading to significant financial gains. Hwang’s ability to identify opportunities and take calculated risks made him a prominent figure in the investment world.