Sam Wyly

Samuel Evans Wyly
Born	(1934-10-04) October 4, 1934 Lake Providence, Louisiana, U.S.
Occupation(s)	Entrepreneur, businessman
Known for	Founder of University Computing Company, Sterling Software; investor in Michaels Stores; co-founder of Maverick Capital and Ranger Capital

Samuel Evans Wyly (born October 4, 1934) is an American entrepreneur who first appeared on the Forbes list of wealthiest Americans in 2000, boasting a net worth of $750 million and maintaining a position on the list until 2010 with a valuation of $1 billion. His initial fortune originated from the public offering of University Computing Company.

Wyly's more recent financial gains were linked to his holdings in Sterling Software and Michael's, a prominent U.S. retailer specializing in art supplies. In 2010, following federal inquiries, he faced charges of federal tax fraud brought by both the SEC and the IRS. He eventually reached settlements with these agencies and filed for bankruptcy in 2014.

Early life and education

Born to Flora and Charles Wyly Sr. in Lake Providence, Louisiana, Wyly hailed from a lineage involved in ministry, education, law, and medicine. From an early age, he contributed to his family’s weekly publication, The Delhi Dispatch, managing advertising sales, reporting duties, distribution logistics, and press operations. His summers were spent laboring in local oil fields.

Wyly graduated from Delhi High School in 1952 where he served as student body president and played as a nose guard on the football team. He pursued higher education at Louisiana Tech University, majoring in journalism and accounting while also selling class rings and holding leadership roles as class president and student senate president.

He obtained an MBA from the University of Michigan in 1957, during which time he adopted the nickname "Sam."

Business career

Following his graduation from Michigan, Wyly completed Air Force Boot Camp in San Antonio and took a position at IBM in Dallas, where he was a peer of Ross Perot. After three and a half years with IBM, he transitioned to Honeywell, where he launched their computer division across Dallas, Fort Worth, and Oklahoma. When Honeywell declined his proposal to establish a new computing center at Southern Methodist University (SMU), Wyly resigned. In 1963, he founded University Computing Company (UCC) with an initial capital of $1,000 plus commitments from clients such as Sun Oil Company and Texas Instruments, alongside $650,000 borrowed from First National Bank in Dallas. UCC went public in September 1965—the same month his twin daughters were born. Within four years, UCC’s stock price had increased one hundredfold from its IPO value, creating millionaires among employees and early investors alike. By 1969, UCC ranked among five Texas-based companies with market capitalizations exceeding $1 billion.

In 1967, Wyly acquired Bonanza Steakhouse, then a ten-store restaurant chain; he expanded it to 600 outlets before selling it to John Kluge. To enhance brand visibility, he employed television advertisements featuring actors from the TV series Bonanza.

In 1968, Wyly purchased Gulf Insurance to support his vision of developing a nationwide digital network capable of rivaling AT&T’s telephone monopoly. That same year, he co-established Earth Resources Company which constructed an oil refinery near North Pole, Alaska to supply jet fuel for trans-Arctic air mail routes.

By the early 1970s, Wyly was serving as an SMU trustee and as a director at First National Bank. In 1972, he established a computer keyboard manufacturing plant on the Wind River Indian Reservation to provide employment opportunities for Arapaho and Shoshone communities. The following year, he divided UCC into four separate entities including Datran—a digital network designed to link 27 U.S. cities directly competing with AT&T. Due to difficulties in securing $400 million amid a downturn in tech IPOs and rising interest rates, Datran declared bankruptcy in 1976. Subsequently, Wyly filed a $300 million antitrust lawsuit against AT&T alleging monopoly abuses; this legal action played a role in AT&T’s eventual breakup into eight competing firms. He retained attorney Bob Strauss on contingency; the resulting $50 million settlement constituted one of Dallas’ largest legal fee payouts at that time.

In 1981, Wyly co-founded Sterling Software, which specialized in mainframe software solutions; it was sold for $4 billion in 2000. Sterling Software’s spin-off Sterling Commerce was acquired by AT&T for $4 billion and later sold to IBM for $1.4 billion in 2010.

Wyly purchased ten arts-and-crafts stores under the Michaels brand in 1982; this business was later sold to Bain Capital and Blackstone for $6 billion in 2006.

In 1990, he co-founded Maverick Capital hedge fund which managed approximately $8 billion by 2003; his son Evan along with money manager Lee S. Ainslie III joined its leadership team in 1993.

During the dot-com boom of 1996, Wyly took Sterling Commerce public by offering 19% of shares for $288 million; remaining shares were distributed tax-free to Sterling Software shareholders.

In 2002, he co-founded Ranger Capital focusing on small-cap investments.

By 2006, both Wyly and his son Evan had become significant investors in clean energy through Green Mountain Energy—promoting alternatives such as natural gas, wind power, and solar energy—making Green Mountain the clean-energy provider for the Empire State Building.

Wyly also invested roughly $1.5 million into social networking startup Zaadz.com by that year.

As of March 2007, Forbes estimated Wyly’s net worth at $1.1 billion; he had maintained presence on the "Forbes 400" list for nine consecutive years.

Books

In January 2007, Cheryl and Sam Wyly took ownership of Explore Booksellers and Bistro.

Wyly's autobiography, 1,000 Dollars & an Idea, was released in September 2008. This was followed by an illustrated biography titled Beyond Tallulah, How Sam Wyly Became America's Boldest Big-Time Entrepreneur, authored by Dennis Hamilton in 2011. Hamilton had been reporting on Wyly since the 1970s within software industry publications.

In October 2012, Wyly collaborated with his son Andrew to publish Texas Got It Right!, which examines the reasons behind job migration from states such as California and New York to Texas and other Southern and Rocky Mountain areas.

Wyly’s 2016 work, The Immigrant Spirit: How Newcomers Enrich America, preceded his final book, Dallas Got It Right!, co-written with Laurie Matthews and Andrew Wyly and published in May 2018.

Political involvement

Since supporting Richard Nixon’s 1968 campaign, Wyly has been a prominent contributor to the Republican Party. That year, he served as a delegate at the Republican Convention and led the "Nixon For President" campaign in Texas, backed by significant funding from Texas-based businessmen.

He also chaired a presidential advisory panel during the administrations of Presidents Nixon and Ford.

During the 1992 presidential race, Wyly observed campaigns from friends Ross Perot and George H. W. Bush, both of whom were defeated by Bill Clinton. In 1994, he played a key role in supporting George W. Bush’s victorious bid for Texas governor and was an early advocate for Bush’s presidential aspirations. Alongside his brother, Wyly made substantial contributions to Bush’s presidential campaigns in 2000 and 2004, which resulted in two terms in office.

Wyly supported Republican candidate John McCain in 2008; however, McCain lost to Barack Obama. After this defeat, Wyly increased his financial support for GOP candidates during the 2010 midterm elections, particularly focusing on races within Texas. This marked his final active political engagement prior to the onset of SEC civil litigation.

Philanthropic activities

Between 1986 and 2011, Wyly and his late brother Charles donated more than $160 million to various charitable initiatives.

In 1968, he founded the Sam Wyly Foundation with the goal of assisting black entrepreneurs.

The brothers jointly funded the construction of Louisiana Tech’s 16-story Tower of Learning and gave $10 million toward Sam Wyly Hall at the University of Michigan in 2000.

Wyly also contributed to numerous organizations such as the Salvation Army, Deaf Action Center, human rights groups, animal shelters located in Dallas and Hillsboro, Texas, healthcare programs for ALS patients, and the Aspen Writers' Foundation. He was a long-term patron of the Dallas Theater Center and is commemorated through the naming of the Wyly Theatre in downtown Dallas.

In 2015, Wyly established the WylyBooks Company.

Federal tax evasion charges and settlement

In 1979, Wyly resolved SEC allegations concerning undisclosed payments intended to avert University Computing's bankruptcy following a $100 million loss on Datran.

In August 2006, both Sam and Charles Wyly were subjects of SEC investigations as well as grand jury inquiries in Dallas and New York over suspected illegal use of offshore tax shelters. Although Texas Senate investigators claimed they utilized offshore trusts to acquire $30 million worth of personal assets—including art and jewelry—no criminal charges were ultimately pursued.

Allegations of securities fraud

The Wyly brothers had earlier faced accusations related to tax avoidance through the transfer of stock options in Michaels and Sterling Software Inc, though no criminal charges were ever filed. On July 29, 2010, the SEC formally accused Charles and Sam Wyly of securities fraud, citing violations of federal laws concerning insider trading. Simultaneously, New York State initiated a civil suit accusing them of improper use of offshore trusts; however, both allegations were ultimately dismissed, and no charges were brought against Wyly. In 2016, Wyly reached a settlement agreement with the SEC, agreeing to pay $198.1 million.

Charges of federal tax evasion

Following the SEC’s inquiry, the IRS launched its own investigation into Wyly’s failure to report and pay federal taxes on assets held in offshore trusts. Wyly contended that these assets were managed by his accountants without his direct awareness. In June 2016, he was found guilty and ordered to remit $1.1 billion, which included $135.5 million in unpaid taxes, $402.1 million in accrued interest, and $570.1 million in penalties. These combined legal proceedings had a profound effect on Wyly’s financial standing, contributing to his bankruptcy filing in 2014. He subsequently sold his residence in Highland Park, Texas in 2017 and reached a settlement with the IRS in October 2019 that involved reduced penalties. As part of the agreement, Wyly arranged for certain seized assets to be placed into a trust benefiting his children.

Personal background

Sam Wyly maintained a close business partnership with his elder brother Charles, who was one year older. Both participated in high school football, attended Louisiana Tech University, and were members of the Pi Kappa Alpha fraternity. Together, they oversaw numerous enterprises under their ownership or control. Charles tragically passed away in a car accident in Aspen’s Roaring Fork Valley in 2011.

Wyly’s marital history includes unions with Rosemary Acton (1960–1976), Victoria L. Steele (married from 1978 until their divorce), and Cheryl Wyly (1994–2016).

He is the father of six grown children: Evan; twins Laurie and Lisa; Kelly; Andrew; and Christiana. In April 2018, Christiana wed Kimbal Musk, sibling of entrepreneur Elon Musk. Between 2013 and 2015, Christiana was in a civil partnership with Skin, lead vocalist of the British rock group Skunk Anansie.

External links

• Oral history interview with Sam Wyly, Charles Babbage Institute, University of Minnesota, December 6, 2002. In this interview, Wyly reflects on his early roles at IBM's Service Bureau Corporation and Honeywell, founding University Computer Corporation (UCC), his focus on computing and telecommunications including the establishment of Datran, efforts to acquire Western Union, developments at UCC leading to its sale to Computer Associates, the creation of Sterling Software, acquisition of Informatics, Sterling's subsequent sale, and his perspectives on the future of information technology.