The Christian Post reports:
Bill Hwang, founder of the more than $10 billion Archegos Capital Management investment firm who was once revered as one of the Evangelical world’s biggest benefactors, could spend the rest of his life in prison after he was arrested and charged Wednesday with racketeering conspiracy, securities fraud and wire fraud offenses.
The charges stem from a number of interrelated schemes to unlawfully manipulate the prices of publicly traded securities in Archegos’ portfolio, the U.S. Department of Justice announced. Prosecutors say those schemes caused billions of dollars in losses to leading global investment banks, brokerages and investors.
In recent years, Hwang, who co-founded the Grace and Mercy Foundation, has been a contributor to Focus on the Family and a trustee of the Fuller Theology Seminary.
From the Justice Department:
“We allege that these defendants and their co-conspirators lied to banks to obtain billions of dollars that they then used to inflate the stock price of a number of publicly-traded companies,” said U.S. Attorney Williams.
“The lies fed the inflation, and the inflation led to more lies. Round and round it went. In one year, Hwang allegedly turned a $1.5 billion portfolio and pumped it up into a $35 billion portfolio. But last year, the music stopped. The bubble burst. The prices dropped. And when they did, billions of dollars of capital evaporated nearly overnight.”
“As alleged, Hwang and his co-conspirators convinced major financial institutions to enter into agreements with them based on lies, the result of which ultimately led to a massive market manipulation scheme,” said FBI Assistant Director-in-Charge Michael J. Driscoll.
“We allege the defendants caused harm to U.S. financial markets and ordinary investors alike, causing significant losses to banks, market participants and Archegos employees. Today’s charges highlight our commitment to making sure the investment arena remains free from fraudulent activity of all kinds.”
Market participants who purchased the relevant stocks at artificial prices lost the value they believed their investments held, the banks lost billions of dollars, and Archegos employees, many of whom were required to invest 25% or more of their bonuses with Archegos as deferred compensation, lost millions of dollars.
FancyThat /$3 Bill Wordle • 3 hours ago
So Focus on the Family gets bankrolled by a crook? And that’s all Biblical, right? Rob Peter to pay Paul and then we can fuck over all the homos. Now I get it.
The authorities don’t care about his employees who lost millions of dollars because they were forced to invest 25% or more of their bonuses with Archegos as deferred compensation. But the banks and other rich people lost billions. That’s the real crime. Stealing money from rich people and banks.