SEC Raises Eyebrows Over Sam Wyly’s Ranch

Regulators accused former billionaire, now bankrupt, Sam Wyly, of hiding his ownership in a Colorado luxury ranch in order to avoid paying creditors $50 million in sale proceeds. 

According to a filing rendered by the Securities and Exchange Commission, Wyly’s plan to sell the 244-acre property involves moving cash offshore before debts are paid.  Wyly helped create companies such as retailer Michaels Stores Inc., and owns about one percent of the ranch near Aspen and Snowmass, with the rest owned by a trust on the Isle of Man.  The property is not listed as part of Wyly’s estate, and he denied ownership of the trust that purchased the ranch for $11 million in 1999. 

“The debtor’s actions with regard to the ranch underscore his ownership and control over the property,” said the SEC.  “By using offshore funds, Sam Wyly and his family obtained the $11million property, constructed several multimillion-dollar homes that they enjoy rent-free, and use the properties with minimal personal expense.”  The IRS has also joined the SEC’s objection to the sale process, saying they were troubled by Wyly’s “silence” regarding whether the sales proceeds would move offshore. 

See Erik Larson, Ex-Billionaire Wyly Targeted by SEC Over Colorado Ranch Sale, The Dallas Morning News, Apr. 17, 2015.