Archegos founder, CFO arrested on 11 criminal counts, including security fraud: Archegos Capital Management founder Bill Hwang and CFO Patrick Halligan were indicted yesterday on charges of securities fraud, wire fraud, and racketeering.
Both pleaded not guilty to the charges. Hwang posted a staggering USD 100 mn in bail, while Halligan was offered bail of USD 1 mn. Archegos is accused of bumping its portfolio from USD 1.5 bn to USD 35 bn in one year by using borrowed money for deceptive trading tactics, according to a statement from Manhattan US attorney Damian Williams cited by Bloomberg.
The meltdown saw banks, including Credit Suisse and Japan’s Nomura Holdings, lose more than USD 10 bn upon the fund’s collapse.
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