Caroline Wyly’s creditors include the Internal Revenue Service, which has an unknown claim in the case, and the Snowmass Club, a country club in Snowmass, Colorado, owed $397.37 in membership dues, according to bankruptcy papers.
The SEC has already challenged the legitimacy of Samuel Wyly’s bankruptcy, saying in an Oct. 21 court filing that the 80-year-old billionaire investor is using Chapter 11 to make an “end run” around the regulator’s enforcement action. The agency is still trying to determine whether his filing was made in good faith, according to court papers.
‘Lavish’ Spending
The SEC has also targeted Samuel Wyly’s personal spending budget, which it called “unnecessary and lavish.” His budget needs approval from a bankruptcy judge if he’s to spend the money. Caroline Wyly hasn’t filed a budget yet in her case.
Charles Wyly was killed in an auto accident in 2011, a year after the SEC sued the brothers and accused them of using offshore trusts in the Isle of Man for 13 years to trade secretly in shares of four public companies on whose boards they sat.
Caroline Wyly’s lawyer, Eric Soderlund, declined to comment on the bankruptcy filing when reached today by phone.
The bankruptcy cases are Caroline D. Wyly, 14-bk-35074; and Samuel E. Wyly, 14-bk-35043, U.S. Bankruptcy Court, Northern District of Texas (Dallas). The SEC lawsuit is SEC v. Wyly, 10- cv-05760, U.S. District Court, Southern District of New York (Manhattan).