SEC Charges Billionaire Brothers With Fraud

The Securities Exchange Commission is charging Texas billionaires Sam and Charles Wyly for allegedly participating in insider trading to the tune of $550 million.

The complaint filed Wednesday by the Commission states, “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.”

The Dallas-based Wylys founded the software company Sterling Silver, which the SEC claims the brothers attempted to defraud along with Scottish Annuity and Life Holdings Ltd. and Michaels Stores, Inc.

Also ensnared in the charges are the brothers’ lawyer Michael C. French and stockbroker Louis J. Schaufele III.

Aside from their roles as entrepreneurs, the Wylys are known as major donors to Conservative causes. According to the watchdog site OpenSecrets.org, the brothers have provided GOP candidates and committees with more than $2 million over the last two decades.

The SEC’s complaint can be read here.