NEW YORK, May 8 (Reuters) – Sung Kook “Bill” Hwang’s criminal racketeering trial over the collapse of Archegos Capital Management begins on Wednesday with the selection of jurors who will decide if he and a deputy broke the law in a massive stock scheme that unraveled in just days in 2021.
The trial in Manhattan federal court is expected to last up to eight weeks and will delve into the implosion of Hwang’s lightly regulated family investment office, which prosecutors allege caused more than $100 billion in shareholder losses at companies in its portfolio.
Federal prosecutors accuse Hwang of using derivatives to secretly amass positions in multiple stocks that were so large they eclipsed that of the companies’ largest investors, driving up stock prices.
They also claim Hwang and former Archegos Chief Financial Officer Patrick Halligan then lied about their holdings to sustain their business relationship with global banks.
Hwang and Halligan are charged with racketeering conspiracy. Hwang faces an additional 10 counts of fraud and market manipulation, and Halligan an additional two counts of fraud.
Source: REUTER
