- Texas entrepreneur Sam Wyly arrives at federal court in New York in May for closing arguments his civil trial.
- Associated Press
The team of writers behind former billionaire Samuel Wyly’s book projects have been let go after a bankruptcy judge warned the Texas entrepreneur that he can’t have both his luxuries and bankruptcy protection.
“The book projects have been temporarily suspended,” according to a new budget that cut out the $32,000 monthly cost of two personal writing assistants.
Mr. Wyly has previously written books on entrepreneurship and had planned to continue writing even after he filed for bankruptcy last month, unable to afford to pay the U.S. Securities and Exchange Commission a nearly $200 million judgment for securities fraud.
But U.S. Bankruptcy Judge Barbara Houser wanted to know if Mr. Wyly would make any money from publishing new books, saying his budget for expenditures “needs to be carefully scrubbed.” An SEC lawyer called the numbers in an earlier proposed budget “exorbitantly inflated,” pointing out that it contained mortgage payments on his wife’s bookstore in Aspen, Colo., and $2,200 for pool, home maintenance and landscaping.
Judge Houser will review the new budget proposal (read it here) on Friday a hearing in the U.S. Bankruptcy Court in Dallas, Texas.
Mr. Wyly, 80, was hit with a $198.1 million judgment for securities fraud involving secret trading through offshore accounts. The 13-year scheme resulted in a guilty verdict on nine different violations of the federal securities laws in May.
A federal judge recently froze Mr. Wyly’s assets to prevent money from his trust accounts on the Isle of Man from flowing to family members. The transfers could deplete the pool of money available to the Securities and Exchange Commission.
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