SEC accuses Sam, Charles Wyly of secrecy, insider trading
The suit is the first formal accusation of wrongdoing against the Wylys after more than six years of subpoenas, grand jury investigations, congressional hearings and copious speculation about when the legal shoes might drop.And we got lots of email from our readers today alerting us that Pete Sessions and the NRCC were recipients of the tainted funds. From The Atlantic:
"The cloak of secrecy has been lifted from the complex web of foreign structures used by the Wylys to evade the securities laws," the SEC said in a statement, calling the Wylys' accounting an "elaborate sham system of trusts and subsidiary companies."
The suit names Wyly attorney Michael C. French of Dallas and stockbroker Louis J. Schaufele III of Dallas as cogs in an intricate global financial network that sold $750 million worth of stock.
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."And, from Wall St. Journal:
Friday, the Democratic Congressional Campaign Committee, a national fund-raising arm for the party, said the National Republican Congressional Committee should return $160,000 it received from the Wyly brothers over the past two decades.Now that the Wyly Brothers are in trouble, will Pete Sessions send them a love letter?
The Wylys, now in their 70s, made their name through computer, retail and hedge-fund ventures over four decades. They have been active in Republican political circles and, together with their wives, have donated nearly $2.5 million to more than 200 federal-level Republican candidates and committees during the past 20 years, according to an analysis by the nonpartisan Center for Responsive Politics.