Famous Wall Street personalities who were sentenced to prison

July 10 (Reuters) – Archegos Capital Management founder Sung Kook “Bill” Hwang was found guilty on Wednesday of fraud and other charges in a criminal trial in New York after his $36 billion private investment firm collapsed in 2021.

Hwang, who pleaded not guilty, faces 20 years in prison for each of the charges, with sentencing to be announced at a later date.

Here’s a look at prominent Wall Street figures who have been sentenced to prison.

BERNARD MADOFF

Madoff pleaded guilty in 2009 to running the largest known Ponzi scheme in history, estimated to be worth $64.8 billion. For decades, Madoff presented himself as a successful and trustworthy Wall Street boss, attracting high-profile and celebrity investors while secretly committing fraud.

Madoff died in 2021 at the age of 82 while serving a 150-year prison sentence.

“Bernie lived with guilt and remorse for his crimes until his death,” Madoff’s attorney Brandon Sample said in a statement about his client’s death.

SAM BANKMAN-FRIED

FTX founder Bankman-Fried was sentenced to 25 years in prison in March for stealing $8 billion from customers of his cryptocurrency exchange – a dramatic fall from grace for the former billionaire wunderkind. Although FTX, based in the Bahamas, was not a traditional Wall Street firm, prosecutors accused Bankman-Fried of old-fashioned financial fraud: using customer assets to buy luxury real estate, prop up his hedge fund and make political donations.

Bankman-Fried pleaded not guilty. His lawyers argued that although Bankman-Fried neglected risk management, he did not steal customer money. Bankman-Fried appealed his conviction and prison sentence in April.

JORDAN BELFORT

Belfort lived a lavish, hedonistic lifestyle before he was arrested for defrauding investors of up to $200 million through his brokerage firm, Stratton Oakmont. He pleaded guilty to securities fraud and money laundering in 1999 and spent 22 months in prison. Belfort is now a motivational speaker and media commentator, and offers sales consulting services.

Oscar-winning director Martin Scorsese explored Belfort’s downfall in the 2013 film “The Wolf of Wall Street,” based on Belfort’s memoir and starring Leonardo DiCaprio.

“The best lesson from my story is that it represents the best you can do with the gifts the gods give you, but also the worst you can do with the weaknesses the gods give you,” Belfort told Reuters in 2011.

IVAN BOESKY

Boesky, who served as the inspiration for the character of the money-hungry Gordon Gekko in the 1987 film “Wall Street,” spent nearly two years in prison for his role in one of Wall Street’s biggest insider trading scandals of the 1980s.

Boesky, known as “Ivan the Terrible,” speculated in takeover stocks. He said he bought shares after formal takeover bids were announced and his fortune was estimated at $280 million. But authorities said the man known for the “greed is good” ideology received tips from investment bankers about deals in the pipeline and used them illegally.

Boesky pleaded guilty to conspiracy in 1987 and received a reduced sentence because he cooperated with prosecutors investigating insider trading and junk bond kingpin Michael Milken. Boesky died in May at age 87.

MICHAEL MILKEN

Milken, known as the junk bond king, was sentenced to 10 years in prison in 1990 after pleading guilty to securities violations, including his dealings with Boesky. Milken spent less than two years behind bars after a federal judge reduced his sentence as a reward for his cooperation with authorities.

In 1991, Milken co-founded the nonprofit Milken Institute, which focuses on cancer, public health and aging research. Milken himself survived advanced prostate cancer. Every year, financial giants flock to the Milken Institute Global Conference, where fund managers court potential investors and charities seek funding opportunities.

Former U.S. President Donald Trump pardoned Milken in 2020.

RAJ RAJARATNAM

Rajaratnam, the founder of New York-based Galleon Group, was convicted of securities fraud and conspiracy in 2011 as part of a sweeping U.S. government crackdown on insider trading.

Prosecutors said Rajaratnam made $63.8 million in illegal profits from trading eBay and Google stocks between 2003 and 2009. At the time of his conviction, his net worth was estimated at over $1 billion.

Rajaratnam was released from prison in 2019. He told Bloomberg in 2022 that he hoped to make a comeback on Wall Street. He protested his innocence.

(Compiled by Michelle Price; Editing by Will Dunham)