Former Archegos CFO Sentenced to Eight Years for Fraud

Patrick Halligan, the former CFO of Archegos Capital Management, has been sentenced to eight years in prison for his role in the firm's 2021 collapse, which led to over $10 billion in losses for Wall Street banks. Convicted of securities fraud, wire fraud, and racketeering conspiracy, Halligan's sentencing follows that of his former boss, Bill Hwang, who received an 18-year sentence. Despite the conviction, Halligan will remain free on bail as he appeals the decision. Prosecutors highlighted Halligan's leadership in securing loans and failing to disclose associated risks, which contributed to market instability. The downfall of Archegos, once managing $36 billion, exemplified significant vulnerabilities in the financial sector, affecting institutions like Credit Suisse and Nomura Holdings. Both Halligan and Hwang's cases underscore the serious repercussions of financial misconduct in high-stakes environments.