NEW YORK (AP) — 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 engaging in a sophisticated scheme involving trades of stock derivatives to secretly build extraordinarily large positions in just a few companies.
According to an indictment, the investment public did not know Archegos had come to dominate the trading and stock ownership of multiple companies because it used securities that had no public disclosure requirement. For instance, prosecutors said, Hwang and his firm once secretly controlled over 50 percent of the shares of ViacomCBS.
The risky maneuvers, however, made the firm’s portfolio vulnerable to price fluctuations in a handful of stocks.
Margin calls in late March 2021 wiped out more than $100 billion in market value in just days, the indictment said.
FILE - Bill Hwang arrives at Manhattan federal court, May 14, 2024, in New York. (AP Photo/Stefan Jeremiah)
PERTH, Australia (AP) — Australia was left teetering on 67-7 in reply to India’s 150 all out as the grassy and bouncy Perth Stadium pitch claimed 17 wickets on the opening day of the Border-Gavaskar series on Friday.
Skipper and fast bowler Jasprit Bumrah led the Indian attack with 4-17 and fellow fast bowler Mohamed Siraj took 2-17 on a difficult day for batting.
Left handers Alex Carey and Mitchell Starc will resume Saturday on 19 and 6 runs, respectively, as Australia trails India by 83 runs.
Unseasonal rain had the wicket covered in the week leading up to the test resulting in a lavish layer of grass to complement the traditional bounce of Perth pitches.
Bumrah ended Nathan McSweeney’s 10-ball debut by trapping the opener leg before wicket. He then returned two overs later to claim opener Usman Khawaja (8) and Steve Smith for nought off successive balls. Khawaja was caught by Virat Kohli at second slip and then Smith was trapped lbw.
Left-hander Travis Head thwarted Bumrah’s hopes of a hit trick but on 11 he played down the wrong line and was bowled off stump to give debutant fast bowler Harshit Rana his maiden test wicket.
Mitchell Marsh fell to a catch by KL Rahul at third slip off Siraj to leave Australia in a similar predicament to India in the morning when it won the toss and batted.
Labuschagne was dropped off the second ball when Kohli spilled a simple catch at second slip and then struggled to put bat to ball and made two runs off 52 balls before Siraj trapped him in front.
As the shadows lengthened Bumrah returned for his second spell and immediately removed his counterpart Cummins caught behind by wicketkeeper Rishabh Pant.
In the first two sessions, seam bowler Josh Hazlewood broke the back of the Indian batting with 4-29 helped by swing bowlers Starc (2-24), Cummins (2-67) and Marsh (2-12).
Indian had slumped to 73-6 either side of the lunch break before Pant (37) and debutant and top-scorer Nitish Kumar Reddy (41) saved face with a 48-run eighth wicket stand.
Scoring runs was not easy on a pitch that offered bounce and sideways movement to Hazlewood and Starc, who claimed 400 test wickets between them to become the first Australian new-ball pair to achieve that feat.
“It is a good day to be a fast bowler,” Starc said. “Both teams bowled well today. There was plenty on the wicket … bit of swing, sideways movement, good pace and carry.”
Reddy, 21, hammered six fours and a six off 59 balls and took the attack to offspinner Nathan Lyon as he twice hit him down the ground and reverse swept in quick succession. He then parried Cummin behind the wicketkeeper for a six before holding out to deep mid-wicket where Khawaja took a running outfield catch. Two balls before, Khawaja dropped Reddy as he skied Cummins.
Earlier, Reddy on 10 survived a catch at the wicket after the Australians failed to refer a catch down legside as the TV replay showed a spike as the ball brushed past the gloves off Starc.
Pant was uncharacteristically circumspect in the company of the junior partner and hit a six and three fours in his 78-ball innings before Cummins had him caught by Smith at second slip.
India was teetering on 51-4 at lunch as the decision to bat first backfired sensationally.
Openers Jashasvi Jaisval (0), Rahul (26), Devdutt Padikkal (0) and star batsman Kohli (5) fell before lunch as India rued its decision to bat.
Opening the batting in the absence of Rohit Sharma, Rahul on 19 completed 3,000 test runs in his 54th test match.
Starc in particular was unplayable in his opening five-over spell during which he had lefthander Jaisval caught at gully by test debutant Nathan McSweeney.
Hazlewood, who was rested after a three-over burst, returned to the attack to replace Starc and in the space of 15 balls removed Paddikal and Kohli.
Padikkal survived 23 balls as he repeatedly played and missed against Starc before Hazlewood had him caught behind by wicketkeeper Carey.
Two overs later, Kohli, having arrived at the crease to the thunderous applause from a record 31,302 opening-day crowd for a test at the Perth Stadium, was surprised by a Hazlewood delivery that bounced disconcertingly and flew off the shoulder of the bat to first slip Khawaja.
Australia and India are one-two in the World Test Championship standings.
AP cricket: https://apnews.com/hub/cricket
Australia's players celebrate the wicket of India's KL Rahul during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's Nathan Lyon fields the ball during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's Josh Hazlewood celebrates the wicket of India's Devdutt Padikkal, second left, during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's Mitchell Marsh, right, walks up to teammate Josh Hazlewood to celebrate the wicket of India's Virat Kohli during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
India's Virat Kohli warms up before the start of the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
India's fans react to the camera as the wait for the first cricket test between India and Australia to begin in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's Josh Hazlewood, facing the camera, celebrates with teammates the wicket of India's Devdutt Padikkal during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
India's Dhruv Jurel bats during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's Mitchell Starc prepares to bowl during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's players celebrate the wicket of India's Virat Kohli during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
India's Virat Kohli bats during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's Josh Hazlewood celebrates with teammates the wicket of India's Virat Kohli during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
Australia's Josh Hazlewood collects the ball as he prepares to bowl during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
India's Yashasvi Jaiswal leaves the field after losing his wicket to Australia's Mitchell Starc during play in the first cricket test between India and Australia in Perth, Australia, Friday, Nov. 22, 2024. (AP Photo/Trevor Collens)
