Jury rules that Dallas billionaires Charles, Sam Wyly used offshore trusts to hide trades

[mc51tc]

Source: dallasnews.com

"May 12 (Bloomberg) — Samuel and Charles Wyly used a web of offshore trusts to illegally hide their stock holdings and evade trading limits, a federal court jury found Monday, leaving Samuel and his brother’s estate potentially liable for as much as $550 million.

The jury of eight women and four men delivered the verdict in federal court in Manhattan in favor of the U.S. Securities and Exchange Commission. The regulator claimed the brothers hid ownership of shares of companies on whose boards they sat and broke disclosure regulations by failing to tell it the full extent of their offshore holdings.

The verdict is the latest trial win by the SEC. A Manhattan jury in August found former Goldman Sachs Group Inc. vice president Fabrice Tourre liable for his role in structuring a failed $1 billion investment.

The SEC seeks to impose penalties and force Samuel Wyly, 79, and the estate of his brother, who died in 2011 at 77, to turn over $550 million of allegedly illegal gains. U.S. District Judge Shira Scheindlin, who oversaw the trial, will determine whether the Wylys committed insider trading and will impose any penalties.

The SEC, among its claims, alleged the Wylys made $31.7 million by accumulating shares of Sterling Software Inc. in 1999, ahead of the company’s $4 billion sale to Computer Associates International Inc."

















Read more: http://www.dallasnews.com/business/business-headlines/20140512-jury-rules-that-dallas-billionaires-charles-sam-wyly-used-offshore-trusts-to-hide-trades.ece

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SEC finally gets a big win against the 1%

[The Magistrate]

1. That, Sir, Is Good News

Cheers to the jury!

[tom_kelly]

2. A, shouldn't he be facing a prison stint? n/t

[KansDem]

4. Maybe he wouldn't "fare well" in prison...

You know, the "DuPont Defense."

Judge said du Pont heir 'will not fare well' in prison

[valerief]

13. Bwahahaha! A billionaire in prison. Now, that's hilarious! nt

[TexasTowelie]

3. Almost half of the net worth of the family!

A long article from D Magazine about Sam Wyly and provides more details as to why the SEC took action:

http://www.dmagazine.com/publications/d-magazine/2013/february/sam-wyly-fight-to-keep-family-fortune?single=1

[WhiteTara]

5. Now make it stick! nt

[Tom Rinaldo]

6. Yes, good news. But it's also like forcing bank robbers to return the stolen loot

...maybe with an added fine, instead of sentencing them to long hard time in a penitentiary, PLUS recovering the loot. But you know bank robbers, unlike these guys, are a real menace to society..

[starroute]

7. For anyone who has forgotten...

http://www.deseretnews.com/article/595090751/Vietnam-Swift-boat-vets-raise-7-million.html

Sept. 12 2004

A group running ads accusing John Kerry of exaggerating his decorated Vietnam War service record is nearing $7 million in contributions, thanks in part to several Republican donors.

The Swift Boat Veterans for Truth has raised at least $6.7 million since it was founded in April. That includes at least $1.9 million in donations of $1,000 or more, with several coming in from people who previously gave to President Bush's re-election campaign and the GOP, according to a report the group filed Friday with the Federal Election Commission.

The big donations include $500,000 from T. Boone Pickens, a Dallas business executive; $200,000 from Houston homebuilder Bob Perry, the group's first six-figure donor; and $10,000 each from Charles and Sam Wyly, Dallas brothers who financed $2.5 million in ads in the 2000 GOP presidential primary race promoting Bush and criticizing his then-opponent, Arizona Sen. John McCain, an analysis by the Political Money Line campaign finance tracking service found.

The Swift boat group has produced three television ads against the Democratic candidate. In the first ad, former sailors who served on boats near Kerry's in Vietnam say he lied about his war record. In the second, veterans criticize his subsequent anti-war activities. The most recently produced ad attacks Kerry for throwing away the medals he earned in Vietnam.

[Zipgun]

8. could not happen to a nicer scumbag. Too bad the other brother died before charges brought.

Every once in a while a little justice and karma slips in.

[blkmusclmachine]

9. You gotta wonder about the Gov's selective enforcement.

It pays to be a part of "THE FAMILY"

[LiberalLovinLug]

10. Ruling that the .1% are guilty of a crime

..is much different than actually making them pay for it.

And it looks like their big penalty, if they get one at all, is to pay back what they gained illegally. What kind of penalty is that? And I have doubts that it will be that harsh. They'll come to a compromise and be fined half at most, and the MSM will "forget" to mention what they stole, and trump up the "massive" fine paid out and the poor poor little rich boys that were caught.

[L0oniX]

11. Seize assets and give em big prison time.

[notadmblnd]

12. What? The guy that died didn't get to take his with him?

[lonestarnot]

14. more more more