Billionaire Sam Wyly off Texas defrauded the IRS by shifting his assets between a grouping of offshore trusts and evaded millions in taxes, a federal judge has ruled. The SEC had filed a lawsuit against Wyly and his brother in 2010 and in 2014, a federal jury in Manhattan found the brothers had used a network of offshore trusts to hide stock holdings. This allowed them to take in $550 million in illegal profit. That caused the filing of a bankruptcy action by Sam Wyly.
Wyly and his brother got rich building business that included the arts and crafts chain Michaels stores.
The IRS seeks to recover $1.4 billion from Sam Wyly and $834 million from his sister in law with penalties.