Wyly Tells Jury He Would Have Disclosed Stock Sales

Apr 24 2014 | 10:19am ET

In his second day on the stand, Ranger Capital and Maverick Capital founder Sam Wyly reiterated that he and his late brother failed to disclose more than $750 million in stock sales because he was advised that he did not have to.

Wyly, who will testify in two-hour increments over the next two weeks due to an undisclosed medical condition, laid the blame at the feet of his former lawyer, Michael French, who is cooperating with prosecutors. Wyly said French assured him that his and his brother’s use of offshore trusts to hide the sales was legal, and if that he had advised otherwise he would have disclosed them.

“I would have told him to make whatever filings he needed to make,” Wyly said.

“Did you have any reason to suspect Mr. French was being anything other than candid and honest?” his lawyer, Stephen Susman, asked.

“No,” Wyly said.

The Securities and Exchange Commission alleges that Wyly and his brother, Charles, who died in 2011, ran an “elaborate sham system” of offshore companies to trade shares of companies on whose boards they sat. The sales occurred over 13 years; some of the proceeds were used to buy ranches in Colorado and Texas, as well as a painting.

“Would you have bought these things, anyway?” Sussman asked.

“Sure,” Wyly said. “Great painting.”


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR