Former Archegos CFO Sentenced to Eight Years in Prison

Patrick Halligan, former CFO of Archegos Capital Management, received an eight-year prison sentence for his role in the firm's 2021 collapse that cost banks over $10 billion. He was convicted of securities fraud, wire fraud, and racketeering conspiracy alongside founder Bill Hwang, who received an 18-year sentence.

Patrick Halligan, the former chief financial officer of Archegos Capital Management, was sentenced to eight years in prison by a Manhattan federal jury on Monday. The sentencing comes as a consequence of his involvement in the company's infamous 2021 collapse, which resulted in more than $10 billion losses for Wall Street banks.

Halligan was found guilty of securities fraud, wire fraud, and racketeering conspiracy in a trial that also saw his ex-boss, Archegos founder Sung Kook "Bill" Hwang, convicted. Despite the conviction, Halligan will remain free on bail as he appeals the decision. His lawyer, Mary Mulligan, refrained from commenting, and Manhattan's U.S. Attorney's office has yet to respond to inquiries.

The domino effect of Archegos' collapse highlighted significant vulnerabilities within the financial sector. Notably, Credit Suisse faced a $5.5 billion loss, while Nomura Holdings was also impacted. Amidst the fallout, Credit Suisse was integrated into UBS. Prosecutors asserted that Halligan played a pivotal role in securing loans and trading resources that skewed market stability and failed to communicate associated risks.

(With inputs from agencies.)