Halligan To Serve Eight Years For Role In Archegos Collapse

Patrick Halligan, the former Chief Financial Officer of Archegos Capital Management, is set to receive an eight-year prison sentence for his involvement in the 2021 collapse of the $36 billion hedge fund. Federal prosecutors and Halligan’s legal team have agreed on the sentence, as outlined in a court filing from his lawyer.

Halligan was convicted in July on charges of racketeering conspiracy, securities fraud, and wire fraud, alongside Archegos founder Bill Hwang, in a high-profile trial that captivated Wall Street.

As part of the sentencing agreement, Halligan would also be required to pay $2.085 million in restitution, corresponding to his earnings during his two-year tenure at Archegos. Additionally, he will forfeit the same amount. His lawyer indicated in a sentencing memo filed in federal court in Manhattan on Friday that Halligan will remain free on bail while appealing his conviction, mirroring the conditions granted to Hwang.

In the memo, Halligan’s attorney, Mary Mulligan, argued for a reduced sentence, citing her client’s deep faith, dedication to family, and commitment to civic service. She also emphasized that Halligan played a lesser role compared to others in the collapse. According to Mulligan, Halligan had repeatedly raised concerns about Archegos’s unstable financial position, warning against the mounting risks and the pressure of the firm’s escalating trading activity. Despite his cautions, trading continued, leading to the eventual downfall of the hedge fund.

U.S. District Judge Alvin Hellerstein previously considered sentencing Hwang to 11.5 years in prison, followed by 6.5 years of home confinement. However, Hellerstein ultimately imposed an 18-year prison term on Hwang, deeming the alternative sentence impractical.

Halligan’s sentencing was on January 27 in the Southern District of New York. The case is identified as U.S. v. Hwang, 22-cr-240.