Former Wall Street investment, Sung Kook” Bill” Hwang, has been sentenced to 18 years in prison in a huge scam circumstance that cost businesses billions of dollars.
Hwang was found guilty of fraud and business manipulation in a 2021 case involving his investment portfolio Archegos Capital Management.
Before announcing the statement, US District Judge Alvin Hellerstein said,” The amount of costs that were caused by your do is larger than any other loss I have dealt with,” according to estimates cited by Reuters media company.
Although the prison sentence for white collar crimes was somewhat shorter than the 21-year prison sentence requested by the prosecution, it is still exceedingly long.
The prosecutor has not yet made an announcement regarding the matter, though the prosecution had even requested compensation. On Thursday, the sentencing hearing will begin.
Hwang was found guilty of lying to the largest investment bankers because he had allegedly lied to many companies in secret.
One of the largest wall account collapses since the 2008 financial crisis occurred when Archegos ‘ failure to pay its creditors caused a massive stock sell-off, which caused the bank to quickly collapse in less than a week.
Credit Suisse, which has since become a part of UBS, Nomura, and Morgan Stanley, are just a few of the major banks that suffered significant losses as a result of Archegos ‘ collapse.
Hwang’s doctors had called for him not to get punished, citing his Christian beliefs and his donations to charity.
They also said his wealth, which at one point was valued at an estimated$ 30bn ( £23.7bn ), had fallen to an estimated$ 55m.
The judge called the requests for leniency “utterly ridiculous” due to the money involved and compared Hwang to the disgraced founder of FTX, Sam Bankman-Fried, who received a 25-year sentence for fraud last year, according to Bloomberg.
Hwang’s attorneys did not respond to the BBC’s request for comment right away.
Hwang’s assistant at Archegos and co-defendant, Patrick Halligan, who was also found guilty on three legal fees at the same test, is set to be sentenced at a hearing scheduled for 27 January.