09-20-2023, 04:47 AM
A federal judge on Tuesday rejected Bill Hwang’s bid to dismiss a Securities and Exchange Commission lawsuit accusing him of fraud that led to the March 2021 collapse of his $36 billion firm Archegos Capital Management.
US District Judge Paul Oetken in Manhattan said the SEC plausibly alleged that Hwang and Archegos, which is also a defendant, intentionally concealed the risks they were taking in their bid to illegally manipulate markets and artificially inflate the value of their largest stock holdings.
Oetken also dismissed some fraud-based claims against Archegos’ former chief financial officer Patrick Halligan, while letting the SEC pursue claims that Halligan aided and abetted fraud by former Archegos risk management chief Scott Becker.
The judge also granted a Department of Justice request to put the SEC civil case on hold while it pursues related criminal charges against Hwang and Halligan.
Oetken in a separate decision dismissed a US Commodity Futures Trading Commission civil lawsuit against Archegos and Halligan, saying the regulator lacked power to sue over the swaps.
Becker and William Tomita, who was Archegos’ head trader, have pleaded guilty in the criminal case. Hwang’s and Halligan’s trial is scheduled for Feb. 20, 2024.
US District Judge Paul Oetken in Manhattan said the SEC plausibly alleged that Hwang and Archegos, which is also a defendant, intentionally concealed the risks they were taking in their bid to illegally manipulate markets and artificially inflate the value of their largest stock holdings.
Oetken also dismissed some fraud-based claims against Archegos’ former chief financial officer Patrick Halligan, while letting the SEC pursue claims that Halligan aided and abetted fraud by former Archegos risk management chief Scott Becker.
The judge also granted a Department of Justice request to put the SEC civil case on hold while it pursues related criminal charges against Hwang and Halligan.
Oetken in a separate decision dismissed a US Commodity Futures Trading Commission civil lawsuit against Archegos and Halligan, saying the regulator lacked power to sue over the swaps.
Becker and William Tomita, who was Archegos’ head trader, have pleaded guilty in the criminal case. Hwang’s and Halligan’s trial is scheduled for Feb. 20, 2024.
Ban reason: Suspected Scamming | Contact us via http://raiddfzn73ir6iyxlf7nwytnujiflddog...on/contact if you feel this is incorrect. (Permanent)