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Former Billionaire in the Red

Former billionaire in the redA federal bankruptcy judge in Texas has ordered former billionaire Sam Wyly to pay $1.1 billion in back taxes, interest and penalties. Wyly  was on Forbes list of the 400 richest Americans in 2010, but it would appear those days are over.

Wyly, age 81, and his late brother Charles (who died in a car crash in 2011) are most famous for founding the Michaels Arts & Crafts chain and Sterling Software, Inc.

They were convicted of conducting a “deceptive and fraudulent scheme” to cheat the Internal Revenue Service. The IRS said the brothers committed tax fraud by shielding much of their wealth in offshore trusts.

The ordered payout includes roughly $135.5 million of taxes, $402.1 million of interest, and $570.1 million in penalties.