Bill Hwang
Family office manager and investor
- Entries
- 13
- On the record
- 10
- Stories
- 1
- Latest entry
- Nov 20, 2024
The record
Before Archegos, Sung Kook 'Bill' Hwang founded and managed the hedge funds Tiger Asia Management and Tiger Asia Partners. In December 2012 the SEC charged him with insider trading and manipulation in Chinese bank stocks, alleging $16.7 million in illegal profits. Hwang and his firms agreed to pay $44 million; he neither admitted nor denied the charges, while federal prosecutors in New Jersey filed criminal charges against Tiger Asia Management.
He then ran Archegos Capital Management as a family office. The SEC alleged that from March 2020 to March 2021 he bought billions of dollars of total return swaps on margin, often to push up stock prices, growing Archegos from about $1.5 billion with $10 billion of exposure to more than $36 billion with $160 billion of exposure at its peak. The CFTC said the fund told swap counterparties its largest position was about 35% of net asset value when it was about 70%.
In the week of March 22, 2021, falling prices triggered margin calls of more than $13 billion that the fund could not meet, and it collapsed, leaving counterparties with losses the CFTC put at over $10 billion. On April 27, 2022, the SEC, the CFTC and Manhattan federal prosecutors brought parallel cases. Two former employees, head trader William Tomita and risk director Scott Becker, settled with the CFTC, admitted their roles and agreed to cooperate.
Roles and honours on the record
Every entry, newest first
- Ruled
Hwang sentenced to 18 years in prison; he has denied wrongdoing, per The Wall Street Journal. Bill Hwang gets 18 years for Archegos; banks lost about $10B
- Ruled
A federal jury in Manhattan found Hwang guilty on 10 of 11 counts, per The New York Times. Bill Hwang gets 18 years for Archegos; banks lost about $10B
- Filed
Hwang's lawyers filed to dismiss the indictment, alleging prosecutorial misconduct, per Reuters; prosecutors declined to comment. Bill Hwang gets 18 years for Archegos; banks lost about $10B
- Filed
SEC filed a civil complaint against Hwang, Patrick Halligan and two former Archegos traders, per The New York Times. Bill Hwang gets 18 years for Archegos; banks lost about $10B
- Reported
Hwang pleaded not guilty in Manhattan federal court and was released on a $100 million bond, per The Wall Street Journal. Bill Hwang gets 18 years for Archegos; banks lost about $10B
- Filed
Indictment unsealed charging Hwang with racketeering conspiracy, securities fraud and wire fraud; the Justice Department says he is presumed innocent. Bill Hwang gets 18 years for Archegos; banks lost about $10B
- Reported
Hwang reached a civil settlement with US securities regulators in an insider trading case and was fined $44 million, per The New York Times. Bill Hwang gets 18 years for Archegos; banks lost about $10B
Stories in this file
The record, entry by entry
- 2012-12-12 Official Hwang, Tiger Asia Management and Tiger Asia Partners agreed to pay $44 million to settle SEC charges of insider trading and manipulation in Chinese bank stocks, alleged to have produced $16.7 million in illegal profits. Hwang neither admitted nor denied the charges; New Jersey federal prosecutors filed criminal charges against Tiger Asia Management. SEC press release 2012-264
- 2020-03 Filed From this month, the SEC alleges, Hwang bought billions of dollars of total return swaps on margin, growing Archegos from about $1.5 billion in value with $10 billion of exposure to over $36 billion with $160 billion of exposure by March 2021. SEC press release 2022-70
- 2021-03 Filed The CFTC alleges Archegos told swap counterparties its largest position was about 35% of net asset value when it was about 70%. CFTC press release 8520-22
- 2021-03-22 Filed In this week, according to the CFTC, falling long positions triggered margin calls of over $13 billion that the fund could not cover, and it collapsed, causing swap counterparty losses of over $10 billion. CFTC press release 8520-22
- 2022-04-27 Filed The SEC sued Hwang, CFO Patrick Halligan, head trader William Tomita and risk officer Scott Becker in Manhattan federal court, alleging market manipulation; enforcement director Gurbir Grewal called Archegos a $36 billion house of cards. SEC press release 2022-70
- 2022-04-27 Filed The CFTC sued Archegos and Halligan for fraud; former employees Tomita and Becker settled with the CFTC, admitted their own roles and agreed to cooperate. CFTC press release 8520-22
Documents
Sources behind this file
- The Wall Street Journal report on the sentence
- The New York Times report on the jury verdict
- The New York Times report on the UBS fine
- Reuters report on Hwang's motion to dismiss
- Justice Department press release on the indictment
- The Wall Street Journal report on the charges and not guilty pleas
- The New York Times report on the arrests and the SEC complaint
- Reuters report on bank losses passing $10 billion
- Reuters report on Morgan Stanley's loss
- The Wall Street Journal report on the $30 billion in stock sales
- Reuters report on the banks' losses and the ViacomCBS share sale