Former Wall Street investor Sung Kook “Bill” Hwang has been sentenced to 18 years in prison for a massive fraud that caused banks to lose billions.
Hwang was found guilty of fraud and market manipulation after his investment firm, Archegos Capital Management, collapsed in 2021. U.S. District Judge Alvin Hellerstein described the losses from Hwang’s actions as “larger than any other losses I have dealt with.”
While prosecutors had requested a 21-year sentence, Hwang received 18 years, which is still unusually long for a white-collar crime. The judge has not yet decided on a restitution payment. The sentencing hearing will continue on Thursday.
Hwang was found guilty of lying to major banks while secretly making large bets on companies. When Archegos couldn’t repay its lenders, it led to a mass sell-off and the firm collapsed, causing one of the biggest hedge fund failures since 2008.
Major banks, including Credit Suisse, Nomura, and Morgan Stanley, suffered huge losses. Hwang’s defense team argued for leniency, citing his Christian faith and charitable donations, as well as his loss of wealth, which had dropped from $30 billion to $55 million. However, the judge dismissed these arguments, calling them “utterly ridiculous.”
Hwang’s co-defendant, Patrick Halligan, who was also found guilty, is scheduled to be sentenced on January 27.