New York (HedgeCo.Net) – Defendant Sam Wyly and the estate of his now deceased brother Charles Wyly, have been ordered to pay disgorgements that could reach $400 million, potentially bankrupting the Texas “entrepreneur.”
The Wylys’ scheme defrauded the investing public by materially misrepresenting the Wylys’ ownership and trading of the securities at issue while enabling the Wylys to realize hundreds of millions of dollars of unlawful gain, the SEC said in a 2010 complaint.
Reuters says: “U.S. District Judge Shira Scheindlin in New York ruled that the Wyly brothers must pay $187.7 million in disgorgement and an undetermined amount of interest that she estimated would increase the total to between $300 million and $400 million.”
The WSJ reports: “In May, the Wyly brothers were found liable on civil fraud allegations for using a system of offshore trusts to hide stock sales, leading to $553 million in profits.”
The two engaged in a 13-year fraudulent scheme to hold and trade tens of millions of securities of public companies while they were members of the boards of directors of those companies, without disclosing their ownership and their trading of those securities.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
