Trial of Archegos Founder Bill Hwang: Closing Arguments in Complex Financial Scandal

In the case of the collapse of the investment firm Archegos Capital, closing arguments were held before jurors in Manhattan on Monday. The prosecution is seeking a conviction of founder Bill Hwang on charges of fraud and market manipulation. According to the indictment, Hwang caused banks billions in losses by artificially inflating stock prices and disregarding regulations. The downfall of the family office in 2021 temporarily shook the Wall Street financial market and, according to prosecutor Andrew Thomas, was not an "accident." During the eight-week trial, it became clear that Hwang had deliberately deceived creditors and small investors by concealing his large corporate holdings, including Viacom, Discovery, and GSX. The scheme unraveled when the market turned against him. Hwang's defense attorney, Barry Berke, argued that the government was reasoning backwards and had constructed a theory to criminalize Hwang only after the collapse. Allegedly, there was no evidence that Hwang had financially benefited from his actions. Before the swift sell-off in March 2021 revealed Hwang's covert positions, the 60-year-old was largely unknown outside the financial world. The collapse led to losses of over $10 billion for lenders such as Credit Suisse, Nomura, Morgan Stanley, and UBS. Hwang faces a total of 11 charges, including securities fraud and extortion. Co-defendant Patrick Halligan, former CFO of Archegos, is being prosecuted for wire fraud and other offenses. Both could face lengthy prison sentences if convicted. The jurors are set to deliberate starting Tuesday. Several former Archegos employees testified during the trial, including former risk chief Scott Becker and former head trader William Tomita. Both had pleaded guilty and acted as key witnesses against Hwang. Tomita reported that he had lied to banks about the fund's concentrated positions on Hwang's orders. Recorded conversations revealed that the firm aimed to systematically deceive business partners. Thomas emphasized that Hwang's actions constituted fraud and that the entire operation was based on a "culture of deception." Berke defended Hwang by stating that he had invested in the questioned stocks out of conviction and that the case was initiated by "two to three events" leading to the unexpected forced sales.