Billionaires Wyly bros. Texans, Republicans, charged w $550m fraud & insider trading

Discussion in 'Wall St. News' started by tmarket, Jul 30, 2010.

  1. The Securities and Exchange Commission is going after two very big fish. On Thursday, the agency accused Samuel Wyly and Charles Wyly of "using secret overseas accounts to reap more than $550 million in profit through illegal stock trades." According to the government, the brothers set up an elaborate network of accounts in the Cayman Islands and the Isle of Man that were used to trade stock in public companies the brothers served on as board members. The Wyly brothers are Texas billionaires who have lavished their vast wealth on a slew of Republican politicians. Here's what we know about them and the SEC complaint:

    This Is Potentially Huge, writes Edward Wyatt in the New York Times: "If the S.E.C. is successful in proving all of its allegations, it could result in one of the biggest judgments ever in a securities fraud case. The commission is seeking disgorgement of the $550 million in gains and prejudgment interest and financial penalties."

    These Guys Owned the GOP, writes Marcus Baram at The Huffington Post: "Charles and Samuel Wyly, along with their wives, have donated $2.5 million to more than 200 Republican candidates and committees over the past 20 years, including over $1.3 million to the Republican National Committee, according to an analysis by the Center for Responsive Politics. The top recipients of their largesse have been Texas Republicans. George W. Bush received at least $100,000 raised by the Wyly clan during the 2000 presidential election. Sen. Kay Bailey Hutchinson has received $30,400 from the family; Rep. Pete Sessions, $29,000. Other Republican senators who've received their donations include John Cornyn of Texas, Sam Brownback of Kansas, Judd Gregg of New Hampshire, John Thune of South Dakota and Kit Bond of Missouri. Sam Wyly also funded the Swift Boat campaign that torpedoed Massachusetts Democrat John Kerry's 2004 presidential campaign."

    They'll Likely Be Shunned, writes Numerian at The Agonist: "In the corporate world, what makes these allegations jaw-dropping is the betrayal they represent of a director's fundamental ethical responsibility to serve the interests of the company and the shareholders who own it. The Wyly's were secretly selling stock in the companies they were publicly supporting as directors, an activity that will likely make them pariahs in the clubby world of executives and wealthy investors who are selected to serve on the boards of major companies."

    Sam Wyly has a book called '1,000 dollars and an idea : entrepreneur to billionaire'. Makes you wonder if that idea involves fraud.
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  2. So $2.5 mill over 20 years is enough to buy the Republican Party? Who comes up with this stuff? I know HuffPo and other democrat shills are desperate to divert attention from the obama train wreck any way they can, but these guys were hardly whales. One look at the kinds of money ibvolved in even house races tells you this kind of money spread over a long period of time doesn't go too far.
  3. so the only way to make money trading now is by illegal means
  4. rew


    This shows that the Democrats are higher priced whores than the Republicans. After all, I'm sure George Soros spent more than $2.5 million buying the Democratic Party.