© 2016 The Texas Lawbook.
By Mark Curriden
(Nov. 10) – U.S. Bankruptcy Chief Judge Barbara Houser’s ruling that Sam Wyly and his deceased brother committed tax fraud is skipping one layer of appeals and is headed directly to the federal appeals court on its merits.
The U.S. Court of Appeals for the Fifth Circuit ruled Thursday that the Wylys can skip the usual step of having a federal district judge review their case, which allows the Wylys to take their argument directly to the Fifth Circuit.
In a three sentence order, appeals court judges Patrick Higginbotham, Catharina Haynes and James Graves granted the Wylys’ request to have the case handled by the New Orleans-based federal appeals court.
Judge Houser ruled the Wylys owe $1 billion in taxes and penalties and interest to the Internal Revenue Service.
Wyly, who is a long-time Dallas entrepreneur and philanthropist, argues that he and his deceased brother, Charles, relied on the professional advice of lawyers and tax professions that the offshore accounts were legal and proper.
Both sides will have a couple months to file briefs outlining their factual and legal arguments to the three-judge panel. Oral arguments are not likely to take place before next spring.
The lawyers representing Sam and Dee Wyly, who is Charles’ widow, are Stewart Thomas, a partner at Hallett & Perrin; Josiah Daniel, Paul Health and Jim Lee, who are partners at Vinson & Elkins in Dallas; Judith Ross of the Law Offices of Judith Ross in Dallas; and David Coale, an appellate law specialist and partner at Lynn Pinker Cox & Hurst.
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