Investing.com – Archegos Capital Management founder Bill Hwang returns to court to seek a reduction in his 18-year prison sentence. He requested that a third of his sentence be served in house arrest.
The hearing is scheduled for Thursday in New York. Barry Berke, Hwang's attorney, asked U.S. District Judge Alvin Hellerstein to change his client's sentence to 11.5 years in prison and 6.5 years of house arrest. Berke is expected to argue that the change was justified because of health concerns and the fact that a longer sentence would have to be served in a maximum-security facility with violent offenders.
Hwang's case has captivated Wall Street. In July, he was convicted of devising a fraud scheme to create billions of dollars in trading capacity for Archegos. This was used to increase the value of its holdings until the firm collapsed in March 2021 and banks lost about $10 billion on deals with Archegos.
Judge Hellerstein's willingness to reconsider Hwang's sentence is an unexpected twist in the trial. The judge could decide whether to grant Hwang's request directly from the bench.
Federal prosecutors argue that the law does not allow Hwang's sentence to be divided so that he can spend 6.5 years in house arrest. They also cite that Hwang would likely be transferred to a U.S. Bureau of Prisons minimum-security facility after about four years and would likely be released to a halfway house after 10 years. They claim that reducing his sentence would be unfair to others convicted of similar crimes.
Prosecutors said it would send the wrong message if wealthy stock manipulators like Hwang received a lighter sentence to avoid the Bureau of Prisons' classification system, which applies equally to all inmates.
Regardless of the court's decision, Hwang is not expected to go to prison soon. Judge Hellerstein has allowed him to remain free pending an appeal process that could last a year or longer.
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