Archegos’s Former Risk Director Settles SEC Claims
Archegos’s Former Risk Director Settles SEC Claims
(Bloomberg) -- Archegos Capital Management’s former head risk manager reached a partial settlement of SEC claims he aided a massive fraud at the firm, a family office that invested the holdings of Bill Hwang.
Scott Becker, who is cooperating with prosecutors in a parallel, criminal case, agreed on Tuesday to an order barring him from violating securities laws and deferring questions of civil penalties, disgorgement of illegal gains and a possible bar on acting as an officer or director of a public company, which will be decided by a judge.
Hwang and Archegos’s former chief financial officer, Patrick Halligan, were arrested last week and charged with what federal prosecutors characterized as a vast criminal scheme to mislead banks and manipulate markets. Both men pleaded not guilty.
Becker and Archegos’s former head trader, William Tomita, previously pleaded guilty to charges including fraud and conspiracy and are cooperating with prosecutors in hopes of receiving reduced sentences.
As part of the civil settlement with the U.S. Securities and Exchange Commission, Becker agreed that he won’t contest the truth of the SEC’s allegations for purposes of determining whether he will have to pay penalties or be subject to an officer and director bar.
The case is SEC v. Hwang, 22-cv-03402, U.S. District Court, Southern District of New York (Manhattan).
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