(Bloomberg) -- A former UBS Group AG vice chair joined other Wall Street figures, clergy and an ex-NFL linebacker in backing leniency for Archegos Capital Management founder Bill Hwang, who faces sentencing next week for fraud and market manipulation.
Bob Foresman, a senior investment banker at UBS from 2016 to 2020, wrote one of more than 100 letters Hwang’s lawyers submitted Friday to back up their recommendation that he be given no prison time when he’s sentenced Nov. 20 by US District Judge Alvin Hellerstein in Manhattan. Hwang faces a maximum of 20 years for each of the 10 counts on which he was convicted.
UBS was one of Hwang’s biggest victims among the counterparties that collectively lost $10 billion when Archegos collapsed in 2021. In his letter, Foresman said that he met Hwang while he was at UBS but that their “relationship was never about the world of finance.” Instead, he said it was about their shared Christian faith and desire to spread its teachings.
Hwang “is one of the most generous people I’ve ever encountered,” Foresman wrote to Hellerstein. “I have personally seen over and over again how Bill only ‘cares about money’ insofar as it allows him to support worthy ministries.”
Money was very much at the heart of the Archegos case. Following a trial that captivated Wall Street earlier this year, Hwang was convicted in July of misleading banks in a bid to pump up trading capacity to build Archegos’ highly concentrated portfolio. That portfolio swelled to $36 billion before the firm imploded in March 2021. Its losses were a major factor in the demise of Credit Suisse, which was acquired by UBS last year.
Acts of Generosity
The letters sought to counteract that narrative, pushing Hellerstein to consider Hwang’s philanthropic efforts and lifelong service to others. Virtually all of the writers stressed his deep commitment to his faith, which is how most came to know him. That side of Hwang’s life, which revolves around his Grace and Mercy Foundation, was largely kept out of the trial at prosecutors’ request.
Hwang got his start at Julian Robertson’s Tiger Management, and several of his former colleagues there submitted letters on his behalf. But these also focused heavily on his personal rather than professional qualities.
Former Tiger managing partner Patrick Duff said he bonded with Hwang over their shared “fervor for our faith” and described numerous acts of generosity, large and small, by his friend.
“If you did not know him for his faith then you didn’t really know him at all,” Duff wrote.
Roberto Mignone, who shared a workspace with Hwang under Robertson’s mentorship, ventured further in addressing his trading style. Mignone, the founder of Bridger Management, said he knew Hwang as the “very model of a patient, long-term investor.” At trial, Hwang’s defense argued that he truly believed in the stocks he was charged with manipulating.
“I have never known Bill to take shortcuts, or that he has expected such behavior from his subordinates,” Mignone wrote.
‘No Private Jets’
Many of Hwang’s supporters stressed his generosity as well as his modest lifestyle.
Rev. Dan Chun didn’t know Hwang had been a billionaire until this year. “No private jets or yachts or homes and he even allowed me to pay for meals as a show of respect (though on the simple side like Chinese food or Chick-fil-A),” he wrote.
Former NFL linebacker Dhani Jones wrote that he became friends with Hwang after they met at a nonprofit event hosted by Robertson. “We shared stories of competition and comparisons in both the world of sports and investing,” wrote Jones, also an investor off the field. “His parables remain timeless and helpful; ‘practice learning what others won’t’.”
In the coming days, prosecutors will file their own sentencing recommendation for Hwang and are likely to ask for substantial prison time.
Archegos Chief Financial Officer Patrick Halligan was also convicted of fraud and racketeering and will be sentenced in January.
--With assistance from Chris Dolmetsch.
More stories like this are available on bloomberg.com
©2024 Bloomberg L.P.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.