NEW YORK, Jan 27 (Reuters) - The former chief financial officer of Archegos Capital Management was sentenced on Monday to eight years in prison for his involvement in the firm's 2021 collapse, which led to over $10 billion in losses for Wall Street banks.
Patrick Halligan was found guilty of securities fraud, wire fraud, and racketeering conspiracy by a Manhattan federal jury last July. His former boss, Archegos founder Sung Kook "Bill" Hwang, was also convicted in the same trial.
Halligan is expected to remain out on bail while he challenges his conviction and sentence. He and prosecutors agreed on the eight-year term for sentencing purposes.
Attorney Mary Mulligan, representing Halligan, declined to provide a statement. The U.S. Attorney's office in Manhattan did not immediately respond to a request for comment.
Hwang was sentenced to 18 years in prison in November. He is similarly appealing his conviction and is free on bail. U.S. District Judge Alvin Hellerstein in Manhattan handed down both sentences.
Archegos, a family office that once oversaw $36 billion, collapsed in March 2021 when Hwang failed to meet margin calls on billions in loans taken from banks to wager heavily on media and technology stocks.
Several banks suffered losses from the collapse, with Credit Suisse taking a $5.5 billion hit, and Nomura Holdings also affected. Credit Suisse is now under UBS.
Prosecutors, in their sentencing recommendation, highlighted Halligan's key role in aiding Hwang to secure loans, build up trading capacity that distorted markets, and conceal risks from counterparties and others.