Regulators won a temporary freeze on the assets of Sam and Charles Wyly and their wives and relatives after the brothers were found liable in a fraud case, Bloomberg News reported today. U.S. District Judge Shira Scheindlin in Manhattan said yesterday that the freeze is appropriate because Sam Wyly and his brother’s estate have said that they can’t pay an award of more than $300 million and because of concern their wives and other relatives may spend money that the brothers owe the U.S. Securities and Exchange Commission. Sam Wyly and and his late brother’s wife, Caroline, both filed for bankruptcy last month, citing a need to preserve assets as they face a U.S. forfeiture order.
