An S.E.C. Complaint filed yesterday, alleges:
“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 of those companies, without disclosing their ownership and their trading of those securities.”
The billionaire brothers are accused of routing ill-gotten gains of over $500,000,000 through accounts in the Cayman Islands, among other places. Their attorney is alleged to have participated in the scheme and is also named in the Complaint. Read the Complaint in its entirety below:
Wyly Brothers Securities Fraud Complaint
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Speaking through their defense counsel to Reuters, the Wylys have denied the allegations and responded that “[a]t worst, the claims appear to represent an after-the-fact justification for a misguided six-year investigation.”
If you have credible, original information regarding securities fraud in excess of $1,000,000, then you may be entitled to a substantial whistleblower reward. To report securities fraud, contact Frohsin & Barger.