The long-running saga of the SEC’s enforcement action against the Wyly brothers continued today with a Chapter 11 bankruptcy filing by Sam Wyly, the remaining living brother. As reported by the Wall Street Journal here, Wyly said that “despite his ‘substantial assets,’ he is unable to pay to the full amount of the claims against him, including the civil fraud judgment,” and that he “’seeks utilize Chapter 11 to negotiate for a fair and comprehensive resolution of his assets and claims though a hopefully consensual plan.’”
The Dallas News coverage is here: “Dallas businessman Sam Wyly files for bankruptcy over $300 million forfeiture“; and the Fort Worth Star-Telegram article is here: “Sam Wyly, facing huge judgment, files for bankruptcy.”
Undoubtedly, considerably more taxpayer and Wyly (or Wyly creditor) money will be spent in various court proceedings before the SEC collects.
October 20, 2014