Archegos founder Bill Hwang discovered responsible of fraud | EUROtoday

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A jury in New York has discovered the Wall Street investor, Sung Kook ‘Bill’ Hwang, responsible of fraud and market manipulation.

It comes three years after the failure of his funding fund Archegos Capital Management, which prompted billions of {dollars} in losses for a number of main banks.

Prosecutors accused Hwang of mendacity to lenders as he secretly amassed massive bets on a number of firms.

When Archegos was unable to repay the banks, it prompted a mass sell-off of shares and the fund collapsed.

Hwang’s deputy at Archegos and co-defendant, Patrick Halligan, was additionally discovered responsible on the three counts he confronted.

Sentencing has been scheduled for 28 October. Both males will stay free on bail.

“While we respect the jury, we intend to appeal and believe our client will be exonerated,” Mary Mulligan, Halligan’s lawyer instructed BBC News.

One of Hwang’s attorneys, Barry Berke, didn’t instantly reply to a request for remark from the BBC.

“Hwang and Halligan lied about Archegos’s positions in these companies and just about every other materially important metric investment banks would use in determining the firm’s creditworthiness,” US legal professional Damian Williams stated after the verdicts.

“In doing so, Hwang and Halligan were able to fraudulently inflate a $1.5 billion [£1.17bn] portfolio into a $36 billion portfolio,” he added.

Hwang had pleaded not responsible to 1 depend of racketeering conspiracy, three counts of fraud and 7 counts of market manipulation.

Halligan had pleaded not responsible to 1 depend of racketeering conspiracy and two counts of fraud.