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.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- 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
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
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.