Former Arcegos CFO, US pleads guilty to eight years in prison.

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(Bloomberg) — Archagos Capital Management’s Patrick Halligan and federal prosecutors have agreed to an eight-year prison sentence in 2021 for his role in the $36 billion collapse of the hedge fund, according to his attorney’s lawsuit.

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Halligan, the company’s former chief financial officer, was indicted in July on charges of conspiracy, securities fraud and wire fraud, along with his former boss, Arkegos founder Bill Huang, in a trial that defrauded Wall Street.

Under the proposed sentence, Halligan will pay $2.085 million in restitution, which he earned during his two years at Arcegos, and another $2.085 million in damages, his attorney said in a sentencing memorandum filed late Friday in federal court in Manhattan. Like Huang, he will be allowed to remain on bail while he appeals his conviction.

Halligan’s attorney, Mary Mulligan, wrote in a memo that her client’s “life of faith,” devotion to family and civic service warrants a shorter sentence than called for by federal sentencing guidelines. She also argued that Halligan had a “relatively smaller role” than others in Archigos’ downfall.

“The evidence shows that Patrick issued repeated warnings and cautionary notes about Archegos’ dire financial condition, as well as the pace of business activity, which was putting additional pressure on the company’s finances,” the lawyer wrote. “Patrick is literally saying ‘cease business,’ but business continues.”

U.S. District Judge Alvin Hellerstein considered sending Hwang to prison for 11/2 years, followed by 6 1/2 years of home detention, but ultimately said that would not be feasible. He was sentenced to 18 years in prison.

Hellerstein is scheduled to sentence Halligan on Jan. 27.

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