Tuesday, August 5, 2014
A lawyer for the U.S. Securities and exchange Commission has said that Samuel and the estate of Charles Wyly ought to pay as much as &750 million for using a web of offshore trusts to illegally hide stock holdings and evade trading limits.
The commission cut the demand for damages in half after U.S. District Judge Shira Scheindlin had rejected an earlier request for $1.41 billion.
The brothers, who were founders of Michaels Stores, perpetrated a fraud that earned them at least $550 million in illegal profit over 13 years, jurors in Manhattan federal court found thirteen months ago. A second trial will begin to resolve how much Samuel and the estate of his brother Charles, who died in a car accident three years ago, have to pay in fines and disgorgement. “The defendants knew they were doing something wrong and something quite risky.”
See Patricia Hurtado, SEC Cuts Wylys’ Damages Demand by Half to $750 Million, Bloomberg, Aug. 4, 2014.