Bill Hwang, the founder of Archegos Capital Management, was sentenced to 18 years in prison on Wednesday for his role in a massive fraud case. The sentencing took place in Manhattan federal court, where Judge Alvin Hellerstein compared Hwang’s crimes to those of Sam Bankman-Fried and Bernie Madoff. Hwang, once one of the wealthiest evangelicals in the United States with a net worth of around $30 billion, was convicted in July of racketeering, securities fraud, market manipulation, and wire fraud.
The collapse of Archegos in March 2021 left banks with billions in losses due to Hwang’s misrepresentations to his lenders. During the sentencing hearing, religious references were abundant, with the judge quoting a psalm and the defense citing Hwang’s Christian faith and philanthropy. Hwang’s lawyers focused on his humble beginnings as a Korean immigrant, his devotion to his family, and his support for 450 organizations through his Christian foundation.
However, the judge stated that Hwang’s good works were “not balanced” with the severity of the crime he committed. US attorney Andrew Mark Thomas described Hwang as a “recidivist,” noting that his previous hedge fund, Tiger Asia, had pleaded guilty to a criminal fraud charge in 2012. In his first comments on the case, Hwang gave a short statement apologizing to those he hurt without admitting guilt.
He expressed his gratitude to God for the blessings in his life and mentioned his family.
Hwang sentenced for massive fraud
Friends and family of Hwang submitted more than 500 pages of letters of support, including letters from Christian leaders and organizations he had supported.
The judge acknowledged these letters but ultimately decided that the severity of the crime outweighed Hwang’s charitable works. Hwang’s lawyers argued that he now has only $55 million left of his billions and raised issues with the prosecution’s portrayal of his lifestyle and use of his foundation. The judge questioned the defense’s narrative of Hwang’s thriftiness and noted that while banks were greedy to enjoy profits from Archegos, cheating them was still cheating.
Each of the ten guilty counts carried a maximum 20-year sentence, meaning Hwang faced the possibility of 200 years in prison. Prosecutors asked for a 21-year sentence, taking into account Hwang’s age and good works. The judge sentenced him to 18 years, plus 3 years of supervised release.
The judge emphasized the difficulty of sentencing and the importance of considering both the good and the bad in a person’s life. He quoted Psalm 82 and told Hwang that as a religious man, his relationship with God and his fellow man were both important. The sentencing serves as a symbol to others that severe punishment can result from not living by the law, even for those who have done charitable works throughout their lives.
