Billionaire Brothers Charles and Sam Wyly Charged with Fraud

Filed in Uncategorized by on August 2, 2010 0 Comments

Billionaire brothers Charles and Sam Wyly have been charged with fraud. Their charges include having offshore accounts that hid half a billion dollars from their 13 years of insider stock trading.

SEC Charges Billionaire Brothers Charles and Sam Wyly

According to the SEC the brothers have traded with companies on whose boards they serve, which has caused them to defraud the American public. Those companies were Michaels Stores, Sterling Software, Sterling Commerce, and Scottish Annuity & Life Holdings, now known as Scottish Re Group Limited. Apparently the SEC complaint says that they have an elaborate system of off-shore trusts and subsidiaries in which they have hidden their gains. How would their conviction effect the businesses they are assciated with?

If convicted, the fallout from the Wyly brothers finances could be huge. In fact, it could affect not only businesses, but also politics. Specifically the GOP in Texas could end up losing a huge source of money.

Wyly Brothers say Charges Meritless

Of course, their attorney, William A. Brewer III says that the complaint from the SEC is “without merit.” They insist that their financial transaction was completely legal and appropriate.

Charles Wyly is 76, and his brother Sam is 75. They were born during the Great Depression, and their family actually lost their farm when the economy collapsed. Over the years, the two have donated $2.5 million to over 200 Republican candidates during the past 2 decades. Their normal donation is big and quiet.

Do you think the billionaire brothers are guilty? Will there be any repurcussions on Wall Street if they are found guilty?

Source: CBS News, CNN

© Copyright: 2010 Kate James at Gather.com

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