SEC Can Pursue Late Billionaire Wyly's Heirs For $50M

Law360, New York (January 27, 2012, 10:05 PM EST) -- A New York federal judge on Friday allowed the U.S. Securities and Exchange Commission to pursue the family of late billionaire Charles Wyly to recover approximately $50 million in alleged fraudulent earnings, saying they should not benefit from his insider trading.

U.S. District Judge Shira A. Scheindlin said in her order granting the SEC's motion to substitute the executor of Wyly's estate, Donald R. Miller Jr., as the defendant in the fraud proceedings, that SEC enforcement actions for disgorgement survive a defendant’s death because they merely...
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