Wylys Claim They Can’t Pay $728 Million Demanded by SEC. By Bob Van Voris Aug 23, 2014 Lawyers for Samuel Wyly and the estate of Charles Wyly, found liable for using a web of offshore trusts to hide STOCK holdings and engage in illegal TRADING, said the $728 million penalty demanded by the Securities and Exchange Commission would bankrupt them. Lawyers for the Wylys and the SEC today delivered closing arguments in a non-jury trial over the amount they should pay as a result of a jury verdict in May. Samuel Wyly and his brother’s estate have a combined net worth of just $119 million, their lawyers told U.S. District Judge Shira Scheindlin in Manhattan. They argued the regulator failed to prove a connection between the amount sought and the transactions for which jurors found them liable. The Wylys claimed in court papers they shouldn’t be required to pay more than $1.38 million. There hasn’t been evidence that a single investor was harmed by the securities law violations,” Harry Susman, one of the Wyly lawyers, told Scheindlin. The brothers, founders of Michaels Stores Inc., perpetrated a fraud that earned them at least $550 million in illegal trading profits over 13 years, jurors found. Charles Wyly was killed in an auto accident in 2011. The SEC cut its demand from $1.41 billion after Scheindlin rejected one of the theories underlying its calculations. The judge also threw out the SEC’s insider-trading claim against the brothers.
Posted on: Sat, 23 Aug 2014 12:17:06 +0000
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