(Bloomberg) — Archegos Capital Management’s Patrick Halligan and federal prosecutors have agreed he should be sentenced to eight years in prison for his role in the 2021 collapse of the $36 billion hedge fund, according to a court filing by his lawyer.
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In a trial that riveted Wall Street, Halligan, the company’s former chief financial officer, was convicted in July of racketeering conspiracy, securities fraud and wire fraud along with his former boss, Archegos founder Bill Hwang.
Under the proposed sentence, Halligan would also pay $2.085 million in restitution, which is what he earned during his two years at Archegos, and forfeit another $2.085 million, his lawyer said in a sentencing memo filed late Friday in federal court in Manhattan. Like Hwang, he would also be allowed to remain free on bail while he appeals his conviction.
Halligan’s lawyer, Mary Mulligan, said in the memo that her client’s “life of faith,” devotion to family and civic service justify a shorter sentence than what’s called for under federal sentencing guidelines. She also argued Halligan had a “lesser relative role” than others in the collapse of Archegos.
“The evidence showed that Patrick repeatedly issued notes of caution and alarm about Archegos’s increasingly precarious financial situation, as well as the pace of the trading activity that was putting further pressure on the firm’s finances,” the lawyer wrote. “While Patrick was saying, in substance, ‘STOP TRADING,’ the trading nonetheless continued.”
US District Judge Alvin Hellerstein considered sending Hwang to prison for 11 1/2 years, followed by 6 1/2 years in home confinement, but ultimately decided that was impractical and imposed a term of 18 years of incarceration.
Hellerstein is scheduled to sentence Halligan on Jan. 27.
The case is US v. Hwang, 22-cr-240, US District Court, Southern District of New York (Manhattan).
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