Texas businessman Sam Wyly, who has given millions of dollars over the years to conservative causes and politicians, will now have to fork over more than $1 billion to Uncle Sam.
The Wall Street Journal is reporting that a federal judge has ordered Wyly to pay $1.1 billion in tax penalties after he was found guilty of using offshore accounts to commit tax fraud.
The problem here is that the 81-year-old Wyly doesn’t have that sort of cash at his disposal anymore — as the Journal notes, the one-time billionaire’s net worth “has fallen to a fraction” of what he owes to the federal government.
Judge Barbara Houser explained this week that Wyly owes tax payments to the government dating all the way back to 1992. Houser this week said that Wyly and his associates created a massive network of offshore accounts designed to hide profits and thus “escape his obligation to pay tax on the annuity income he was contractually entitled to receive.”
Houser said that the scope of these networks was “nothing short of mind-numbing…with identically named domestic and foreign corporations, and layers upon layers of foreign entities.”
At any rate, this pretty much ensures Wyly won’t be using whatever cash he has left to help elect right-wing politicians in the near future.