SEC accuses Dallas investors of insider trading

[ProSense]

Source: Associated Press

DALLAS – Famed Dallas billionaire investors Sam and Charles Wyly made $550 million in undisclosed profits through 13 years of insider trading in the shares of companies on whose boards they served, according to a Securities and Exchange Commission lawsuit filed Thursday.

In a 78-page complaint filed in a Manhattan federal court in New York, the SEC said the Wylys held and traded tens of millions of securities in the companies and "defrauded the investing public" by misrepresenting the Wylys' ownership and trading of those shares.

"The apparatus of the fraud was an elaborate sham system of trusts and subsidiary companies located in the Isle of Man and the Cayman Islands ... created by and at the direction of the Wylys," the SEC complaint stated.

Using this offshore system, the Wylys were able to sell stock worth more than $750 million in four public companies where they served as corporate directors. They also committed an insider trading violation at one of the companies that resulted in an unlawful gain of over $31.7 million, according to the complaint.


Read more: http://news.yahoo.com/s/ap/20100730/ap_on_bi_ge/us_wyly_bros_insider_trading_3

[ccinamon]

1. insider trading penalties should be

200% of what they got and 1 year in prison for every proven charge ...no more slap on the wrists

[Dirigo]

2. Move Along

Move along, no crime scene here, nothing to rubberneck on, nothing going on. GOP stock answer

[Octafish]

3. SEC charges billionaire Texas brothers who donate to GOP with fraud

Is how WaPo put it. Swells, the Have-Mores. Heh heh.

[ProSense]

4. Texas billionaires trying to influence 2010 elections

3 Dallas executives give $1 million each to target Senate Majority Leader Harry Reid, other Democrats

By WAYNE SLATER / The Dallas Morning News

AUSTIN – Dallas oilman Trevor Rees-Jones may not know Senate Majority Leader Harry Reid , but he's betting $1 million that he can make the Nevada Democrat's political life more difficult these days.

Rees-Jones is helping bankroll a group spearheaded by Karl Rove and funded largely by Texans to air TV spots attacking Reid and other Democrats.

Virginia-based American Crossroads has raised $4.7 million – two-thirds of it from Texans – for a national effort. Three Dallas billionaires are providing much of the money.

Rees-Jones, president and CEO of privately held Chief Oil and Gas, and investors Harold Simmons and Robert Rowling have given $1 million each. Of 29 donors to American Crossroads, 20 are from the Lone Star State.

more

[Blue_Tires]

5. i'm starting to wonder if there are any successful investors who DON'T

rig the system in one way or another...