SEC Hits Wyly Brothers With $550M Fraud Charges

Law360, New York (July 30, 2010, 10:44 AM EDT) -- The U.S. Securities and Exchange Commission has accused brothers Samuel E. Wyly and Charles J. Wyly Jr. of pulling in over $550 million in undisclosed gains by trading stock in public companies while sitting on their boards.

The brothers used hidden entities located in foreign jurisdictions to conceal their ownership and trading of the securities over the course of their 13-year scheme, the SEC said in a complaint filed in the U.S. District Court for the Southern District of New York on Thursday.

The brothers built...
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