Texasinvestor Sam Wyly agreed to pay $198.1 million to settle SEC claims that heengaged in fraudulentacts by using offshore trusts in the Isle of Man to commit tax fraud, Reuters reportedOct. 1, citing a filing in a Manhattan federal court.
Wylyand his family reportedly agreed to ensure that the offshore trusts will makepayments to satisfy a 2015 ruling in favor of the SEC. In 2010, the regulatoralleged that Sam Wyly and his brother Charles Wyly, who since died, undisclosed profits of$553 million using the offshore trusts.
Inexchange, the SEC will work to ensure that Sam Wyly gets a credit against hisfederal income tax liabilities, according to the report.
Thesettlement is subject to approval by SEC commissioners and a Dallas bankruptcyjudge who heard hisapplication for Chapter 11 protection in 2014.
Accordingto the report, Sam Wyly is also in negotiations with the IRS to resolve $1.11billion of back tax claims, following a court issued in May.