Wyly Brothers: SEC Complaint on $550 Million Fraud

This might generate a bit of buzz tomorrow via the FT:  Wyly brothers accused of MASSIVE insider scandal (how is it that the FT scoops US papers?):

This is pretty big:

SEC Indictment

SEC Announcement

Here’s the key paragraphs:

“The Wyly brothers reaped more than $550 million in undisclosed gains while sitting on corporate boards by trading stock in those public companies through hidden entities located in foreign jurisdictions to conceal their ownership and trading of those securities.

The SEC alleges that the brothers created an elaborate sham system of trusts and subsidiary companies in the Isle of Man and the Cayman Islands to sell more than $750 million worth of stock in four public companies for which they were corporate directors. They also committed an insider trading violation in one of the companies for an unlawful gain of more than $31.7 million.

If there are two bigger scumbags in the State of Texas, I am unfamiliar with them. And if the SEC allegations are true, then these two douches are going to spend most of the rest of their lives behind bars.

I am curious as to which political shit-for-brains will be out defending these two jerk offs . . .


UPDATE July 29, 2010 10:05pm

Here is a question:

This seems too complex a case for for the SEC to have happened upon. I’ll bet there is a whistleblower — or juicier still, an insider that turned — somewhere in this case . . .

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