Founder of Archegos Capital Management, Bill Hwang, was arrested on April 27 after being indicted on charges of securities fraud, wire fraud, and racketeering, announced federal prosecutors for the Southern District of New York in Manhattan.
The head of the New York-based hedge fund, which collapsed in March 2021 after defaulting on margin calls, was taken into custody with the firm’s Chief Financial Officer Patrick Halligan, on allegations that the two men defrauded leading global investment banks and brokerages out of billions of dollars in interrelated schemes and manipulated the price of stocks.
The collapse of the firm shocked Wall Street after borrowing investments from banks and brokerages, saddling the firm with more than $10 billion in losses, according to the indictment.
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