Bill Hwang Sentenced to 21 Years for Fraud

Bill Hwang, founder of Archegos Capital Management, is facing a recommended 21-year prison sentence for his role in a market manipulation scheme that led to the collapse of his $36 billion firm and over $10 billion in losses for lenders. Prosecutors accuse Hwang, 60, of lying to banks to secure loans and making risky bets on stocks like ViacomCBS, resulting in a staggering $160 billion exposure. The firm’s downfall in March 2021 triggered significant losses for major banks, including $5.5 billion for Credit Suisse and $2.9 billion for Nomura Holdings. Hwang, who was convicted in July of securities and wire fraud, did not testify during his trial and is expected to appeal the conviction. His legal team argues against a prison sentence, citing insufficient evidence of his lies causing losses, his age, health issues, and philanthropic efforts. Sentencing is set for November 20 in Manhattan federal court.