Skip to content

Wyly Brothers and Their Attorney Sued by S.E.C. for Alleged Half Billion Insider-Trading Scam

July 30, 2010

An S.E.C. Complaint filed yesterday, alleges:

“Sam Wyly and Charles Wyly engaged in a 13-year fraudulent scheme to hold and trade tens of millions of securities of public companies while they were members of the boards of directors of those companies, without disclosing their ownership and their trading of those securities.”

The billionaire brothers are accused of routing ill-gotten gains of over $500,000,000 through accounts in the Cayman Islands, among other places. Their attorney is alleged to have participated in the scheme and is also named in the Complaint. Read the Complaint in its entirety below:

Wyly Brothers Securities Fraud Complaint


Speaking through their defense counsel to Reuters, the Wylys have denied the allegations and responded that “[a]t worst, the claims appear to represent an after-the-fact justification for a misguided six-year investigation.”

If you have credible, original information regarding securities fraud in excess of $1,000,000, then you may be entitled to a substantial whistleblower reward. To report securities fraud, contact Frohsin & Barger.

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: