Image source, Getty Images
- Author, Joao da Silva
- Role, Business reporter
A jury in New York has found Wall Street investor Sung Kook “Bill” Hwang guilty of fraud and market manipulation.
Prosecutors accused Hwang of lying to lenders after secretly placing large bets on several companies.
When Archegos failed to repay the banks, a massive sell-off in stocks occurred and the fund collapsed.
Hwang’s deputy at Archegos and co-defendant, Patrick Halligan, was also found guilty of the three charges against him.
The verdict is scheduled for October 28. Both men remain free on bail.
“While we respect the jury, we intend to appeal and believe our client will be acquitted,” Mary Mulligan, Halligan’s lawyer, told BBC News.
One of Hwang’s lawyers, Barry Berke, did not immediately respond to a request for comment from the BBC.
“Hwang and Halligan lied about Archegos’ positions in these companies and about virtually every other key measure investment banks use to determine a company’s creditworthiness,” U.S. Attorney Damian Williams said after the verdicts.
“By doing this, Hwang and Halligan were able to fraudulently inflate $1.5 billion [£1.17bn] portfolio into a $36 billion portfolio,” he added.
Hwang had pleaded guilty to one count of racketeering conspiracy, three counts of fraud and seven counts of market manipulation.
Halligan had pleaded not guilty to one count of racketeering conspiracy and two counts of fraud.