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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.