Bill Hwang, the founder of collapsed family office Archegos Capital Management, has been arrested by US prosecutors, who allege that senior executives at the fund manipulated the prices of securities in their portfolios.
The office imploded a year ago, creating billions of dollars of losses for investment banks including Credit Suisse, UBS, Nomura and Morgan Stanley after it defaulted on margin calls.
Hwang is one of the so-called Tiger Cub veterans of Julian Robertson’s Tiger Management fund.
The indictment accuses him and former chief financial officer Patrick Halligan of using Archegos as an “instrument of market manipulation and fraud”, which had “far-reaching consequences for other participants in the United States securities markets”.
It adds that Hwang and Halligan, along with several others, operated two interrelated criminal schemes.
This is a developing story
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