(Bloomberg) — Archegos Capital Management’s Patrick Halligan and federal prosecutors have agreed that 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 from his attorney.
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In a trial that gripped 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 he earned during his two years at Archegos, and forfeit another $2.085 million, his attorney said in a sentencing memorandum filed late Friday in Manhattan federal court. Like Hwang, he would also be allowed to remain free on bail while he appeals his conviction.
Halligan’s attorney, Mary Mulligan, said in a memorandum that her client’s “life of faith,” commitment to family and civic service warranted a shorter sentence than that required by federal sentencing guidelines. She also claimed that Halligan had a “smaller relative role” than others in the collapse of Archegos.
“The evidence showed that Patrick repeatedly warned and cautioned about Archegos’ increasingly precarious financial situation, as well as the pace of trading activity that was putting further pressure on the company’s finances,” the lawyer wrote. “While Patrick said, in essence, ‘STOP TRADING,’ the trading continued.”
U.S. District Judge Alvin Hellerstein considered sending Hwang to prison for 11 1/2 years, followed by 6 1/2 years of house arrest, but ultimately decided that was impractical and imposed an 18-year sentence.
Hellerstein is scheduled to sentence Halligan on Jan. 27.
The case is USA v. Hwang, 22-cr-240, US District Court, Southern District of New York (Manhattan).
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