The SEC has been attempting to collect on a $300 million judgment after Sam and Charles Wyly were convicted of perpetuating an offshore stock-trading fraud for over 13 years. Now the children of the Wyly brothers are challenging the SEC’s attempt to go after estate assets, and arguing that they should not be punished for their father’s transgressions. The Wyly family claims that there is no evidence that they inherited proceeds that can be traced to the fraud conviction. There is currently a freeze on $300 million dollars of the estate’s assets after U.S. District Judge Shira Scheindlin imposed a $299.4 million penalty on Sam Wyly and the estate of Charles Wyly (who perished in a 2011 automobile accident).
See Wyly Family Battles SEC Over $300 Million In Court-Frozen Assets, Private Wealth, July 9, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
