The Internal Revenue Service is seeking to recoup $3.22 billion from Texas businessman Samuel Wyly and the estate of his late brother Charles Wyly, after the brothers allegedly hid income by setting up sham overseas trusts, Reuters reported yesterday. According to claims filings on Wednesday in bankruptcy court, the IRS believes that Samuel Wyly owes $2.03 billion in back taxes, interest and penalties, while his brother's estate owes $1.19 billion. The IRS filed its claims after a Manhattan federal judge on Feb. 26 ordered Samuel Wyly and Charles Wyly's estate to pay $299.4 million to the U.S. Securities and Exchange Commission, after a jury last May found them liable for securities fraud. Both defendants are appealing that judgment.
