The previous chief monetary officer of Archegos Capital Administration was sentenced on Monday to eight years in jail over his position within the agency’s 2021 collapse, which price Wall Road banks greater than $10 billion.
Patrick Halligan was convicted of securities fraud, wire fraud and racketeering conspiracy by a Manhattan federal jury final July. His former boss, Archegos founder Sung Kook “Bill” Hwang, was additionally convicted on the identical trial.
Halligan is anticipated to stay free on bail whereas he appeals his conviction and sentence. He and prosecutors agreed on the eight-year time period for sentencing functions.
Mary Mulligan, a lawyer for Halligan, declined to remark. The US Lawyer’s workplace in Manhattan didn’t instantly reply to a request for remark.
Hwang was sentenced in November to 18 years in jail. He’s additionally interesting his conviction and free on bail. US District Choose Alvin Hellerstein in Manhattan imposed each sentences.
Archegos, a household workplace that when managed $36 billion, collapsed in March 2021 when Hwang couldn’t meet margin calls on tens of billions of {dollars} in loans he obtained from banks to make massive, concentrated bets in media and know-how shares.
A number of banks misplaced cash within the collapse, together with Credit score Suisse, which misplaced $5.5 billion, and Nomura Holdings. Credit score Suisse is now a part of UBS.
Of their sentencing suggestion, prosecutors stated Halligan performed a management position in serving to Hwang get hold of loans and amass buying and selling capability that distorted markets, and concealing the dangers from counterparties and others.
