NEW YORK, July 11 Texas tycoon Sam Wyly and his
late brother, Charles, were found not liable for insider trading
by a U.S. judge on Friday, two months after a federal jury found
them liable for committing fraud by using offshore trusts to
hide stock sales.
U.S. District Judge Shira Scheindlin in New York said the
U.S. Securities and Exchange Commission had failed to show that
the Wylys' desire to sell a company they controlled, Sterling
Software, was material knowledge that could form the basis for
Scheindlin is scheduled to preside over a non jury trial in
August to determine the amount of damages the Wylys must pay to
the government. The SEC has said it will seek up to $553
million, a figure the Wylys have disputed.
(Reporting by Joseph Ax; Editing by Bernadette Baum)