Archegos Capital Management owner Bill Hwang and its former chief financial officer, Patrick Halligan, were arrested Wednesday in connection with the implosion of the family office last year.
The men are expected to appear in Manhattan federal court later Wednesday, and are being charged with racketeering conspiracy, securities fraud and wire fraud, according to a statement from a U.S. district court.
The court documents allege Hwang used his personal fortune to manipulate markets and commit fraud in a scheme that had far-reaching consequences. Over the course of about a year, Hwang’s wealth rose from about $1.5 billion to more than $35 billion, the documents said.
When the family office collapsed it resulted in billions of losses for banks and Archegos’ own employees.
This story is developing. Please check back for updates.