Ex-CFO of Archegos, US agrees he should get eight years in prison

(Bloomberg) — Patrick Halligan of Archegos Capital Management and federal prosecutors have agreed that he should be sentenced to eight years in prison for his role in the 2021 collapse of the $36 billion hedge fund, according to a federal court. his lawyer.

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In a trial that rivets Wall Street, Halligan, the company’s former chief financial officer, was convicted in July of racketeering conspiracy, securities fraud and fraud along with his former boss, Archegos founder Bill Hwang.

Under the proposed sentence, Halligan will also pay $2.085 million in restitution, which is what he earned during his two years at Archegos, and forfeit another $2.085 million, his attorney said in a sentencing memo filed Friday late in federal court in Manhattan. Like Hwang, he would also be allowed to remain free on bail while he appeals his conviction.

Halligan’s attorney, Mary Mulligan, said in the memo that her client’s “faith life,” devotion to family and civic service warranted a shorter sentence than required by federal guidelines. of sentence. She also argued that Halligan had a “relatively minor role” than the others in the collapse of Archegos.

“The evidence showed that Patrick repeatedly issued notes of caution and alarm about the increasingly precarious financial situation of Archegos, as well as the pace of business activity that was putting more pressure on the finances of the company,” the lawyer wrote. “While Patrick said, in essence, ‘STOP TRADING,’ the trading continued.”

U.S. District Judge Alvin Hellerstein considered sending Hwang to prison for 11 1/2 years, followed by 6 1/2 years at home, but ultimately decided that was impractical and imposed a term of 18 years of imprisonment.

Hellerstein is scheduled to hear from Halligan on Jan. 27.

The case is US v Hwang, 22-cr-240, US District Court, Southern District of New York (Manhattan).

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