Yesterday, U.S. District Judge Shira Scheindlin ruled that Sam Wyly and the estate of his late brother, Charles, must pay $187.7 million in disgorgement following the SEC’s May 2014 jury verdict against them. On May 12, 2014, a federal jury in Manhattan found that the Wyly brothers were liable for fraud and violations of the reporting requirements for corporate insiders related to their use of a system of offshore trusts to conceal their transactions as directors of publicly-traded companies. The Wylys are the founders of Michaels Stores Inc.
