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.
This is according to 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.
Both men "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.
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.
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This is according to 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.
Both men "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.
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.
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