On Wednesday, April 27, 2022, the US Attorney’s Office for the Southern District of New York unsealed an indictment charging Sung Kook “Bill” Hwang—founder of the now-defunct Archegos hedge fund—and Patrick Halligan—Archegos’ CFO—with conspiring to defraud banks out of billions of dollars.
According to the indictment, Hwang and Halligan lied to market participants about the fund’s portfolio by allegedly using derivative securities that did not have public disclosure requirements to obscure the size of Archegos’ positions in multiple companies from the public. As a result, the fund was “highly vulnerable” to price fluctuations in a number of stocks. When the prices of those stocks declined around late March 2021, Hwang allegedly directed Archegos’ traders to engage in a “buying spree” to attempt to reverse the price declines of the stocks underlying Archegos’ core positions. To effectuate that request, the traders allegedly used Archegos’ remaining cash and credit, including funds the Government alleges were borrowed based on misrepresentations, to pay for billions of dollars in trades over a few days. According to the Government, the “buying spree” failed, causing approximately $100 billion in market value to disappear.
Credit Suisse notably lost $1.5 billion in the Archegos downfall.
Hwang and Halligan have been charged...
A video shows the Green Party celebrating an election win in a foreign language. False. This video was posted before the election. It is a Bengali language campaign video posted by the Green Party ...