Former Wall Side road investor, Sung Kook “Invoice” Hwang, has been sentenced to 18 years in jail in an enormous fraud case that price banks billions of greenbacks.
The sentence comes after Hwang was once discovered responsible of fraud and marketplace manipulation in a case connected to the failure of his funding fund Archegos Capital Control in 2021.
“The quantity of losses that have been led to by means of your behavior are higher than another losses I’ve handled,” US District Pass judgement on Alvin Hellerstein stated prior to saying the sentence, in quotes cited by means of Reuters information company.
The jail time period was once quite shorter than the 21-year jail sentence sought by means of prosecutors, however continues to be strangely lengthy for a white-collar crime.
Prosecutors had additionally been in search of a restitution fee however the pass judgement on has now not introduced his choice at the subject. The sentencing listening to is about to renew on Thursday.
Hwang was once discovered responsible of mendacity to primary funding banks as he secretly accumulated huge bets on a number of corporations.
When Archegos was once not able to pay off its lenders, it brought on a mass sell-off of shares and the fund temporarily collapsed in lower than every week, making it some of the greatest hedge fund collapses because the 2008 monetary disaster.
Some of the primary banks that suffered large losses on account of Archegos’ implosion have been Credit score Suisse, which has since grow to be part of UBS, Japan’s Nomura and Morgan Stanley.
Hwang’s attorneys had known as for him to not be punished, bringing up his Christian religion and his donations to charity.
In addition they stated his wealth, which at one level was once valued at an estimated $30bn (£23.7bn), had fallen to an estimated $55m.
The pass judgement on known as the requests for leniency “totally ridiculous” because of the cash concerned and when compared Hwang to the disgraced founding father of FTX, Sam Bankman-Fried, who won a 25-year sentence for fraud ultimate 12 months, in step with Bloomberg.
Hwang’s attorneys didn’t instantly reply to a request for remark from the BBC.
Hwang’s deputy at Archegos and co-defendant, Patrick Halligan, who was once additionally discovered responsible on 3 legal fees on the identical trial, is about to be sentenced at a listening to scheduled for 27 January.
