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Archegos liquidation4/8/2023 ![]() No one outside of Archegos knew the size of those positions, said the government, because the fund used many different brokers and lied to them. (which recently merged with Warner Bros.) and 50% of ViacomCBS, by borrowing from its prime brokers. The SEC says that Archegos built positions equivalent to 60% of the shares outstanding of Wednesday’s SEC complaint alleges that Hwang and his colleagues dominated the trading volumes in a few stocks, buying before the market opened and just before it closed, to drive up stock prices. Archegos carried on thereafter as a family office for Hwang and his employees. Hwang rebranded the fund, from Tiger Asia to Archegos, after pleading guilty in 2012 to criminal insider-trading charges and settling civil fraud charges with the SEC. The now 57-year old Hwang started the hedge fund firm Tiger Asia Management in 2001, after working for the legendary investor Julian Robertson. The Securities and Exchange Commission filed a parallel civil complaint in the Manhattan federal district court, alleging fraud and stock manipulation by Archegos Capital, Hwang, Halligan, Tomita and Becker. “Pat Halligan is innocent and will be exonerated,” she said in a statement. Halligan’s attorney Mary Mulligan also promised a fight. “A prosecution of this type, for open-market transactions, is unprecedented and threatens all investors.” “Bill Hwang is entirely innocent of any wrongdoing,” said Lustberg, expressing confidence that his client would be exonerated. Hwang’s defense attorney Lawrence Lustberg, said in a statement that his client had fully cooperated with the government’s investigation, and expressed disappointment that the FBI arrested the hedge fund manager instead of allowing him to turn himself in. Williams said that Archegos employees William Tomita and Scott Becker have entered guilty pleas and will cooperate with the prosecution. But last year, the music stopped, the bubble burst, the prices dropped, and billions of dollars evaporated nearly overnight.” “The lies and inflation led to more inflation and to more lies,” said Williams. financial system, said Williams at a morning press conference. The stock-inflating scheme was historic in scope and seriously jeopardized the U.S. attorney for the Southern District of New York. (NMR) suffered losses that collectively exceeded $10 billion, according to the indictment filed by Damian Williams, the Manhattan-based U.S. Those bets totaled $160 billion before the exhaustion of the fund’s buying power triggered the March 2021 collapse of its positions. It alleges that the men conducted an elaborate scheme to mislead the prime brokers who gave loans and created synthetic stock swaps that enabled Archegos to hide concentrated bets that inflated stocks like An unsealed indictment charged the pair with 11 counts of racketeering and fraud.
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