Federal agents arrest Archegos owner Bill Hwang and a former top lieutenant.

Federal brokers arrested Invoice Hwang, the proprietor of Archegos Capital Administration, the $10 billion household workplace that imploded final yr in a buying and selling debacle, and his former chief monetary officer on Wednesday morning.

Mr. Hwang and his former prime lieutenant, Patrick Halligan, had been arrested at their properties and are anticipated to look in Manhattan federal court docket later right now. The arrests had been introduced by Manhattan federal prosecutors.

Federal prosecutors stated the boys had been charged with racketeering conspiracy, securities fraud and wire fraud in reference to a scheme to control the costs of publicly traded shares with the intention to increase returns. They stated the plan, which relied closely on leverage, helped pump up the agency’s portfolio from $1.5 billion to $35 billion in a single yr.

The collapse of Archegos shocked Wall Road and brought on main losses for giant banks and led to investigations by federal prosecutors, the Securities and Change Fee and different regulators.

The arrests would mark one of many greatest Wall Road white collar prosecutions in years.