On Monday, Patrick Halligan, the Chief Financial Officer of the now-defunct Archegos Capital Management, was sentenced to eight years in prison. The sentencing follows his conviction for defrauding banks, which occurred prior to and during the 2021 collapse of the $36 billion family office led by Bill Hwang. The sentence imposed on Halligan is significantly less than the 18-year term given to Hwang in November.

Both Halligan and Hwang were found guilty in July of the previous year for deceiving financial institutions into providing Archegos with billions of dollars in trading capacity. However, Hwang faced additional charges and was convicted of market manipulation, which contributed to his lengthier sentence.

US District Judge Alvin Hellerstein explained that Halligan, at 48 years old, merited a shorter sentence than Hwang. Hellerstein described Hwang as the "dynamic force of Archegos," and noted that while Halligan was aware of the consequences, he was not the instigator of the fraudulent activities.

Federal prosecutors highlighted in a court document before the sentencing that although Halligan was "far less culpable than Hwang," he was nonetheless integral to the scheme. They stated, "Hwang did not involve Halligan in the trading, but Hwang’s trading could not have happened without Halligan’s help." This statement underlines the critical role Halligan played in enabling Hwang's trading activities that ultimately led to the firm's downfall.

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