US prosecutors denied claims by Archegos Capital Management’s Bill Hwang that fraud charges against him should be thrown out because of their “deceitful” conduct in discussions before his April arrest.
(Bloomberg) — US prosecutors denied claims by Archegos Capital Management’s Bill Hwang that fraud charges against him should be thrown out because of their “deceitful” conduct in discussions before his April arrest.
The government acted in good faith when investigators agreed to hear presentations by Hwang and his lawyers, who were seeking to avoid charges from the investigation, prosecutors argued in court papers filed late Thursday night.
Hwang argued in court filings last month that prosecutors duped him into thinking they had not yet decided to bring charges against him, leading him to provide information that was helpful to their case. His arrest soon after those meetings show they had already decided to prosecute, his lawyers claim.
“What Hwang characterizes as indicia of deceit were in fact part of a good faith effort by the government to arrive at a just outcome by affording Hwang and his lawyers an opportunity to be fully heard before making a charging decision,” lawyers in the office of US Attorney Damian Williams said in the filing.
Hwang and former Archegos Chief Financial Officer Patrick Halligan were arrested April 27 and charged in the collapse of Archegos, which at one point held market positions valued at $160 billion, according to prosecutors. They face the possibility of decades in prison if they’re convicted. Both men have pleaded not guilty.
“Based upon even a preliminary review, we are confident that we will have strong and persuasive responses to both the Government’s legal and factual contentions,” Hwang’s lawyer, Lawrence Lustberg, said in an email. The lawyer said he was reviewing the papers, which were filed shortly before midnight.
The case is US v. Hwang, 22,cr-00240, US District Court, Southern District of New York (Manhattan).
(Updates with details of court filing)
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