Wylys accused of insider trading
July 30, 2010
DALLAS – The Securities and Exchange Commission has filed suit in New York against famed Dallas billionaire investors and local land owners and philanthropists Sam and Charles Wyly, accusing them, their attorney and their stockbroker of insider trading.
The 78-page complaint filed in a Manhattan federal court Thursday alleges the Wyly brothers made $550 million in undisclosed gains over 13 years by trading in securities of companies on whose boards they served.
Sam Wyly is the owner of Explore Booksellers in Aspen, while Charles Wyly was a major benefactor in the creation of the Wyly Community Art Center in Basalt.
Also named as defendants in the lawsuit are the Wylys’ investment attorney, Michael C. French of Dallas, and the stockbroker, Louis J. Schaufele III of Dallas.
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.” Attorneys for French and Shaufele had no comment.