Bill Hwang Seeks Reduced Sentence in Court

Bill Hwang, the founder of Archegos Capital Management, is returning to court to seek a reduction in his 18-year prison sentence. He aims for one-third of the sentence to be served in home confinement.

The hearing is set for Thursday in New York. Hwang's attorney, Barry Berke, will request US District Judge Alvin Hellerstein to modify the sentence to 11.5 years in prison and 6.5 years in home confinement. The argument centers on health concerns and the implications of serving a longer term in a high-security facility for violent offenders.

Hwang's case has captured Wall Street’s attention. In July, he was convicted of a scheme that defrauded banks by securing billions in trading capacity for Archegos, which led to losses of roughly $10 billion after the firm's collapse in March 2021.

The judge’s willingness to reconsider Hwang's sentence is unexpected. He may rule on the request from the bench during the hearing.

Federal prosecutors oppose the modification, arguing that laws prohibit splitting Hwang's sentence to allow for home confinement. They emphasize that allowing this would be unjust to others who have faced similar convictions. Prosecutors also point out that Hwang can be moved to a minimum-security facility, with potential release to a halfway house after 10 years.

Regardless of the ruling, Hwang is unlikely to enter prison soon; Judge Hellerstein has allowed him to remain free while awaiting an appeal, which could extend for a year or more.

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