U.S. federal prosecutors accused Bill Hwang, 57, founder of Archegos Capital Management, a family office that suffered huge losses, and Patrick Harrigan, 45, chief financial officer.suebottom.
Prosecutors said Juan used Alkegos as a “market manipulation and fraudulent tool” to artificially inflate the portfolio from $ 1.5 billion to $ 35 billion, resulting in a deadlock in operations for banks and finance. He noted that it caused huge losses to market investors and their employees.
Bill Hwang
Photographer: Emile Wamsteker/Bloomberg
Juan was detained by federal authorities early on the 27th. It is expected to appear in the Federal District Court in Manhattan on the same day. The US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) also filed a civil suit once morest Juan and others on this day.
According to a statement by Federal Attorney Damian Williams of Manhattan, both Juan and Harrigan were charged with 11 charges, including market manipulation and securities fraud.
“Bill Hwang is not cheating and is completely innocent,” Hwang’s agent, Lawrence Lastberg, said in a statement. He explained that Mr Juan has been supportive of the investigation into Arquegos.
“Pat Harrigan is innocent and will prove innocence,” Harrigan’s agent Mary Mulligan said in a statement.
According to the indictment released on the 27th, Arquegos’ position in the market temporarily expanded to $ 160 billion. He said he used fraudulent trading tactics to hide his true holdings from the market. Positions are expanded by borrowing and derivatives with no formal reporting obligations. When market trends turned negative in March 2021, Mr. Juan instructed fund traders to buy to raise prices.
Original title:Hwang Charged With Fraud Over $35 Billion Archegos Mirage (2)(excerpt)
(Update with details regarding the prosecution and comments from the agent)