Archegos founder Bill Hwang convicted of fraud

A New York jury has convicted Wall Street investor Sung Kook “Bill” Hwang of fraud and market manipulation.

Prosecutors have accused Hwang of lying to lenders by secretly raising large bets on several companies.

When Archegos defaulted on its debts to the banks, it led to a massive sell-off in shares and the fund collapsed.

Hwang’s deputy at Archegos and co-defendant, Patrick Halligan, was also convicted of the three charges he faced.

Sentencing is scheduled for October 28, and both men remain free on bail.

“While we respect the jury, we intend to appeal and believe our client will be acquitted,” Halligan’s lawyer, Mary Mulligan, told BBC News.

Barry Burke, one of Hwang’s lawyers, did not immediately respond to a request for comment from the BBC.

“Hwang and Halligan lied about Archegos’ positions in these companies and every other important metric that investment banks use to determine a company’s creditworthiness,” U.S. Attorney Damian Williams said after the verdicts were handed down.

“With this, Hwang and Halligan were able to fraudulently inflate $1.5 billion.” [£1.17bn] He added that “the new investment portfolio will increase to a portfolio worth $36 billion.”

Hwang had pleaded not guilty to one count of racketeering conspiracy, three counts of fraud, and seven counts of market manipulation.

Halligan had pleaded not guilty to one count of racketeering conspiracy and two counts of fraud.