Wyly Says Ex-Lawyer ‘Made His Deal With The Devil’

May 2 2014 | 11:16am ET

On his last day on the stand, Ranger Capital and Maverick Capital co-founder Sam Wyly held nothing back, vis-à-vis his feelings about his former lawyer.

That attorney, Michael French, is cooperating with the Securities and Exchange Commission, and told the jury earlier in the trial that Wyly and his late brother, Charles, designed a series of trusts to illegally hide their stock-trading from the public. Wyly has denied the allegations, and offered his own take on French’s testimony.

“Mr. French made his deal with the devil,” Wyly said in response to a question from an SEC lawyer. “I mean, he has agreed to testify to the thing you wanted him to testify to, and he has done so.”

Wyly and his brother, who died in 2011, are accused of running a $550 million insider-trading scheme, using what the SEC calls an “elaborate sham system” of offshore entities to trade shares of companies on whose boards they sat. Wyly’s testimony was broken up over five days due to an undisclosed medical condition.

Prior to his final session on the stand, the SEC wrapped up its case. Wyly’s lawyers are expected to finish their defense today.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of