Archegos Founder Bill Hwang, Former CFO Charged With Securities Fraud

Archegos Capital Management founder Bill Hwang and its former chief financial officer, Patrick Halligan, were indicted on securities fraud and racketeering charges Wednesday in what prosecutors said was a massive fraud and manipulation scheme that nearly jeopardized the U.S. financial system.

Archegos collapsed in March 2021, leaving banks with more than $10 billion in losses and sparking calls for more regulatory oversight. More than $100 billion in stock market value vanished in a matter of days.

Damian Williams, U.S. attorney for the Southern District of New York, described the purported scheme as historic in scope, alleging that defendants and their co-conspirators lied to banks to obtain billions of dollars in loans, which they then used to inflate the stock price of publicly traded companies.

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