Billionaire Wyly Brothers Accused of Insider Trading

The SEC has filed suit in New York against famed Dallas billionaire investors Sam and Charles Wyly, accusing them, their attorney, and their stockbroker of insider trading. The 78-page complaint alleges the Wyly brothers made $550 million in undisclosed gains over 13 years by trading in securities of companies on whose boards they served. The New York Times notes that the brothers are major donors to conservative causes.

The Wylys' defense attorney, William A. Brewer III of Dallas, calls the charges "without merit" and "appear to represent an after-the-fact justification for a misguided six-year investigation." (More Sam Wyly stories.)