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Wyly brothers liable for fraud

A jury’s found a pair of Texan billionaire brothers set up a maze of trusts here in the Isle of Man to commit a fraud which netted them more than £300 million.

 

Samuel Wyly and his brother Charles Wyly, who died in 2011, were being sued by America’s Securities and Exchange Commission in Manhattan.

 

The trial heard the two men created a number of trusts here on the Island which to trade shares in four companies they were board members of.

 

The Wylys denied they were the beneficial owners of the shares in Sterling Software, Michaels Stores, Sterling Commerce and Scottish Annuity & Life Holdings.

 

Jurors at the federal court said both 79 year old Samuel Wyly and his brother’s estate were liable on all the claims brought by the SEC.

The Securities and Exchange Commission said between 1992 and 2004, the scheme had earned the brothers £326 million.

US District Judge Shira Scheindlin will assess damages when a trial for remedies goes ahead in early August.

After the verdicts today, the Wylys issued a statement saying they were deeply disappointed by the decision and will continue to fight on.

 

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