SEC Accuses Sam And Charles Wyly, Billionaire Dallas Investors, Of Insider Trading Yielding $550 MIL

[unhappycamper]

SEC Accuses Sam And Charles Wyly, Billionaire Dallas Investors, Of Insider Trading Yielding $550 MILLION
TERRY WALLACE | 07/29/10 11:02 PM | AP

DALLAS — Sam and Charles Wyly, Dallas billionaire investors known for their support of conservative candidates and causes, made $550 million in undisclosed profits through 13 years of insider trading, 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 shares in companies on whose boards they served and "defrauded the investing public" by misrepresenting their ownership and trading of those stocks.

"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.

The complaint lists the four companies as Michaels Stores Inc., Sterling Software Inc., Sterling Commerce Inc. and Scottish Annuity & Life Holdings Ltd., which is now known as Scottish Re Group Ltd.

[malaise]

1. K & R

This is huge!! Get thee to the greatest page!

[HughBeaumont]

2. "What'sthuh problem? Greed is GREAT! Taxes are for the little people! NyAHHHAHAAH!"

Once again, nothing is ever, EVER enough for America's wealthy.

[GoCubsGo]

3. Now, let's see the SEC go after the rest of them. n/t

eom

[DFW]

4. So all that money they donated to the Republicans was fraudulently obtained?

Plus ça change, as they say............

[malaise]

5. Isn't that how deregulation is

supposed to work??? :sarcasm:

[DFW]

6. Works really well, too, doesn't it? n/t

[malaise]

8. Velly velly

well :hi:

[spanone]

7. they will retire to the same island as kenny lay

[upi402]

9. the Isle of Man is the new Caymans?

When did this happen? Does BP run that country too? I guess so. k/r