Wylys Used Offshore Trusts to Hide Trades Jury Finds
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Samuel and Charles Wyly used a web of offshore trusts to illegally hide their stock holdings and evade trading limits, a jury found, leaving Samuel Wyly and his brother’s estate potentially liable for as much as $550 million.
The panel of eight women and four men today delivered the verdict in Manhattan federal court in favor of the U.S. Securities and Exchange Commission. The regulator claimed the brothers, founders of Michaels Stores Inc., hid ownership of shares of companies on whose boards they sat and broke disclosure regulations by failing to reveal the full extent of their offshore holdings.