Archegos Capital Management founder Bill Hwang arrested on billion-dollar fraud charges

The owner of a New York-based hedge fund that collapsed when it defaulted on margin calls was arrested Wednesday on charges alleging he defrauded leading global investment banks and brokerages of billions of dollars by telling them lies so his private investment firm could grow its portfolio from $10 billion to $160 billion.

The charges unsealed in an indictment in Manhattan federal court named Sung Kook "Bill" Hwang, the founder of Archegos Capital Management, and his former chief financial officer, Patrick Halligan. Both were expected to appear later in the day in court. They face racketeering conspiracy and fraud charges.

Hwang carried out the alleged fraud from March 2020 to March 2021 by originally investing his personal fortune, which grew from $1.5 billion to over $35 billion, and later the investments he borrowed from major banks and brokerages, which grew from about $10 billion to over $160 billion, the indictment claimed.