**Title:** Former Archegos Employees Awarded $33 Million After Collapse
**Meta Description:** A federal judge rules that ex-Archegos employees are owed $33 million for losses from the firm’s collapse, prioritizing their compensation.
**URL Slug:** archegos-employees-awarded-33-million
**Headline:** Federal Judge Awards $33 Million to Former Archegos Employees Following Firm’s Collapse
In a significant ruling, a federal judge has determined that a group of former employees from Archegos Capital Management, including a key analyst who worked closely with founder Bill Hwang, are entitled to $33 million in compensation for losses incurred during the firm’s dramatic collapse. The decision, issued by US District Judge Alvin Hellerstein, places the 39 ex-Archegos staff members at the forefront of those seeking restitution from Hwang and the firm’s former chief financial officer, Patrick Halligan, both of whom were convicted of fraud last year.
This ruling is particularly noteworthy given that Hwang and Halligan owe approximately $9.4 billion to former trading partners, including major banks like UBS Group AG, Morgan Stanley, and Nomura Holdings. Hwang, once valued at over $30 billion, saw his wealth plummet when Archegos, his family office, collapsed in 2021. His legal representatives estimated his remaining net worth to be around $55 million last year.
The former employees had invested deferred compensation into Archegos, with some alleging they felt pressured by Hwang to do so. Controversy arose regarding the eligibility of certain employees to recover their losses. In January, Andy Mills, the former co-CEO, withdrew his efforts to reclaim losses after prosecutors labeled him a “knowing participant” rather than a victim of Hwang’s fraudulent activities. Although Mills was not charged, prosecutors also indicated that senior analyst David Park was not a victim due to his close involvement with Hwang’s trading strategies.
However, Judge Hellerstein ruled in favor of Park, agreeing with his testimony that he did not falsify information, had no role in dealings with the defrauded banks, and was unaware of any illegal activities. Hwang received an 18-year prison sentence for misleading banks into providing Archegos with trading capacity, which inflated the value of his concentrated portfolio until it ultimately collapsed in March 2021. The fallout from Archegos’ failure significantly impacted major financial institutions, including Credit Suisse Group AG, Morgan Stanley, and UBS.
Legal representatives for Hwang did not respond to requests for comments regarding the ruling, while Halligan’s attorney declined to comment. Both individuals remain free on bail as they await appeal. Judge Hellerstein noted that Halligan’s financial responsibility is limited to one-third of the total amount owed, attributing a larger share of blame to Hwang.
**FAQ Section:**
**Q: What was the outcome of the federal judge’s ruling regarding former Archegos employees?**
A: A federal judge ruled that 39 former Archegos employees are owed $33 million for losses from the firm’s collapse, prioritizing their compensation over other creditors.
