Archegos hedge fund founder Bill Hwang gets 18 years in prison for massive fraud

abcnews.go.com:

The founder of Archegos Capital Management, a hedge fund, has been sentenced to 18 years in prison for his conviction in a securities and market manipulation fraud that prosecutors say cost global investment banks billions of dollars

NEW YORK — The founder of Archegos Capital Management, a hedge fund, was sentenced to 18 years in prison on Wednesday for securities and market manipulation fraud in a scheme that prosecutors said cost global investment banks billions of dollars.

Bill Hwang was told the length of the prison term in Manhattan federal court after he told Judge Alvin K. Hellerstein that he felt “really terrible for what happened at Archegos,” alluding to the fund's demise over three years ago.

The judge did not complete the sentencing hearing, though, and said it will resume on Thursday. But he said he had “pronounced” the length of the prison term he is imposing.

Hellerstein estimated that up to nine financial institutions lost over $9 billion in the fraud.

At Hwang's July trial, prosecutors blamed Hwang and his co-conspirators, saying they artificially inflated the values of nearly a dozen stocks before the investments collapsed in March 2021, wiping out $100 billion in market value along with the company he created.

Hwang was convicted in July of 10 criminal counts, But he was acquitted of one charge of market manipulation while being convicted of six others.

Prosecutors said Hwang lied to banks to get billions of dollars to grow his New York-based investment firm before its portfolio grew dramatically from $10 billion to $160 billion.

At the start of Hwang's trial, Assistant U.S. Attorney Alexandra Rothman told jurors that Hwang was already a billionaire when he sought “to be a legend on Wall Street” by