The SEC’s Still Got It!


A jury of aged Texas billionaire Sam Wyly’s New York mailman peers were surprisingly unsympathetic to the argument that his elaborate series of offshore trusts designed to both hide stock trading and minimize tax liability were totally legal, even if one juror really wanted to help the old guy out, evidence be damned.

A jury on Monday found that Texas business brothers Samuel and Charles Wyly committed fraud by creating a secret scheme involving offshore trusts that netted them $550 million in illegal trading profits…..

The trial followed years of litigation and investigation by the SEC and other authorities of the Wylys, who acknowledged creating a maze of trusts in the Isle of Man in an effort to obtain tax benefits….

The 12 jurors deliberated over 2-1/2 days. Kevin Rothman, a retired letter carrier, said one juror had been a holdout until ultimately convinced the Wylys did not have a viable defense.

"We couldn't see it, we couldn't find it," he said.

Texas’ Wyly brothers committed fraud with offshore trusts: jury [Reuters]