Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
SEC finds Samuel Wyly's bankruptcy budget 'staggering'
Author: Joel R. Glucksman
Date: November 4, 2014
Key Contacts
Back
Texas tycoon Samuel Wyly, 80, has been accused of attempting to deplete his domestic assets in order to impede the ability of U.S. creditors to collect in his bankruptcy.
Wyly filed for protection under Chapter 11 of the bankruptcy law earlier this month, after claiming that he does not have the assets to pay the $300 million that he owes to U.S. regulators for his role in a fraudulent offshore scheme, according to Reuters. He was found liable for fraud in May, which led to U.S. District Judge Shira Sheindlin ordering him and the estate of his late brother Charles to pay damages of $187.7 million plus interest to the U.S. Securities and Exchange Commission. The SEC has since said that the total, including interest, should be $299.4 million, making this one of the largest awards ever sought from an individual defendant.
In a document filed with the U.S. bankruptcy court in Dallas, Wyly listed both assets and liabilities between $100 million and $500 million, according to the news source. As for the reason that he is seeking Chapter 11 protection, Wyly cited the cost of fighting civil claims from the SEC.
In a more recent piece by Reuters, it was reported that a lawyer for the SEC is now criticizing Wyly’s proposed bankruptcy budget. The budget includes almost $7,000 per month for supporting elderly friends and family members and $32,000 per month for assistants.
“We are concerned that the debtor is attempting to deplete domestic assets and making it harder for U.S. creditors to collect,” said Angela Dodd, an SEC lawyer, according to the news source.
Meanwhile, the SEC and the Wylys are contesting whether the hundreds of millions of dollars that remain in offshore accounts should be subject to the bankruptcy. The Wylys argue that this money belongs to their children and other beneficiaries, while the SEC noted that a jury has found that the Wylys control the money.
Late last week, according to Reuters, U.S. District Judge Shira Scheindlin said that she was “not very happy” about the bankruptcy filing and would order Wyly’s assets temporarily frozen. The judge said she would also freeze the assets of Wyly’s brother’s estate, as well as funds held in offshore trusts at the center of the lawsuit by the U.S. Securities and Exchange Commission.
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.