Bill Hwang Judge Considers Reducing 18-Year Prison Sentence

Berke said federal prison rules would prevent Hwang from serving a sentence of more than 11 1/2 years in a minimum security prison. Instead, he’d be assigned to a facility that would include violent felons and an increased risk of harm, offer less access to medical care and pose additional difficulties for his family in visiting.

The judge ordered the parties to outline their arguments by Dec. 5 and said he would hold a hearing on Dec. 18. He asked the defense to privately submit information on Hwang’s health. He also agreed to allow Hwang to remain free pending the expected appeal.

Window for Berke 

Thursday’s unusual twist took place at a court session that was a continuation of Wednesday’s all-day sentencing hearing. Hellerstein set the extra session to consider issues in addition to the prison term, including how much Hwang may have to repay victims of his crimes.

Typically, sentencings take place on a single day over several hours, and judges often postpone them to gather more information from both sides. Hellerstein’s decision to add a second day gave Berke an opportunity to urge the sentence modification.

Throughout Wednesday’s hearing, Hellerstein had signaled that he intended to impose a tough sentence. He called the defense’s initial request for no prison time “utterly ridiculous” in light of the money involved.

Hwang himself spoke only briefly, telling the judge he felt “deep pain” about what happened at Archegos, but not admitting guilt.

The firm’s implosion contributed to the demise of one of the biggest names in finance, Credit Suisse Group AG, and caused significant losses at Morgan Stanley, UBS Group AG, Nomura Holdings and others.

The case is U.S. v. Hwang, 22-cr-240, U.S. District Court, Southern District of New York (Manhattan).

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