The NYTimes‘ Peter J. Henning does a great job analyzing the S.E.C. case against Dallas’ Wyly brothers. Conclusion: It won’t be easy for the feds to win.
6 comments
Glenn’s linked NY Times analysis of the SEC civil case against the Wyly’s states this: “By not settling the case before the S.E.C. filed its complaint, they are indicating that they plan to fight the charges.”
True, but not settling may indicate something else, too: fear of a future criminal indictment.
I’m speculating, but if the Wyly’s had settled and paid a big fine, wouldn’t that essentially be an admission that they’d done something wrong, which might generate criminal charges more easily?
It’s also interesting that their personal lawyer and stockbroker were charged alongside. This suggests heat will be put on those guys to deliver the bigger fish. It may work, but thirty-plus years ago it didn’t. The Wyly in-house lawyer at University Computing Corporation gave nothing to the feds and did two years in the slammer for his loyalty. The brothers largely skated.
@ 7:40 pm on July 30, 2010
Obama election time harrassment
put the fear into gop donors
@ 9:02 pm on July 30, 2010
@Kris, you should probably do a bit more reading on this Wyly business.
The charges against them are the result of a six-year investigation that began in 2004 when Bank of America reported to the S.E.C. that it had terminated numerous accounts held in the name of companies based in the Isle of Man because it could not determine who actually owned the companies.
This would be in the middle of George W. Bush’s presidency, and his S.E.C.
A U.S. Senate committee in 2006 devoted much of its final report to the Wyly offshore accounts and raised all kinds of questions.
This would be a Republican-controlled senate, in the middle of George W. Bush’s second term.
This nasty affair has been coming down the pike for a long, long time, and nobody knows it more than Sam and Charles Wyly. To suggest that this is somehow an Obama administration ploy is to not know the history. And as for the Wyly’s, their history re shady stock dealings and litigation with the feds goes way back, to the 1970’s.
@ 10:33 pm on July 30, 2010
I am waiting for Wyly’s new book, “$550 Million Dollars and the Case Against Me.”
I am here all night folks.
@ 4:04 pm on August 1, 2010
“Obama election time harrassment (sic)”
Thanks for the baseless FOX News paranoid thoughts. Now go back to watching Glenn Beck.(See Jackson’s comments.) Who knew Obama was running the Bush DOJ?
Sure looks like a classic insider/off-shore stock manipulation scheme, the Robber Barrons for the 1800’s would be proud.
How about it must really, really be blatant for even the Bush DOJ to pursue? Remember the Bush SEC where the guys that wouldn’t go after Mandoff or Sanford (Session’s “I love you man” buddy) despite letters spelling out the obvious fraud.
@ 4:40 pm on August 1, 2010
Grumpy – The Bush SEC? Bernie’s fraud was pointed out to the SEC which was run by commissioners appointed by Clinton. By the time President Bush had appointed all five of the SEC Commissioners of which no more than three can be from one party, Bernie’s ponzi was starting to unravel on its own.
@ 3:33 pm on August 2, 2010
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FrontBurner® launched in March 2003, the first blog in Dallas run by a media organization. This is where the editors of D Magazine come to waste a tremendous amount of time.
6 comments
Glenn’s linked NY Times analysis of the SEC civil case against the Wyly’s states this: “By not settling the case before the S.E.C. filed its complaint, they are indicating that they plan to fight the charges.”
True, but not settling may indicate something else, too: fear of a future criminal indictment.
I’m speculating, but if the Wyly’s had settled and paid a big fine, wouldn’t that essentially be an admission that they’d done something wrong, which might generate criminal charges more easily?
It’s also interesting that their personal lawyer and stockbroker were charged alongside. This suggests heat will be put on those guys to deliver the bigger fish. It may work, but thirty-plus years ago it didn’t. The Wyly in-house lawyer at University Computing Corporation gave nothing to the feds and did two years in the slammer for his loyalty. The brothers largely skated.
Obama election time harrassment
put the fear into gop donors
@Kris, you should probably do a bit more reading on this Wyly business.
The charges against them are the result of a six-year investigation that began in 2004 when Bank of America reported to the S.E.C. that it had terminated numerous accounts held in the name of companies based in the Isle of Man because it could not determine who actually owned the companies.
This would be in the middle of George W. Bush’s presidency, and his S.E.C.
A U.S. Senate committee in 2006 devoted much of its final report to the Wyly offshore accounts and raised all kinds of questions.
This would be a Republican-controlled senate, in the middle of George W. Bush’s second term.
This nasty affair has been coming down the pike for a long, long time, and nobody knows it more than Sam and Charles Wyly. To suggest that this is somehow an Obama administration ploy is to not know the history. And as for the Wyly’s, their history re shady stock dealings and litigation with the feds goes way back, to the 1970’s.
I am waiting for Wyly’s new book, “$550 Million Dollars and the Case Against Me.”
I am here all night folks.
“Obama election time harrassment (sic)”
Thanks for the baseless FOX News paranoid thoughts. Now go back to watching Glenn Beck.(See Jackson’s comments.) Who knew Obama was running the Bush DOJ?
Sure looks like a classic insider/off-shore stock manipulation scheme, the Robber Barrons for the 1800’s would be proud.
How about it must really, really be blatant for even the Bush DOJ to pursue? Remember the Bush SEC where the guys that wouldn’t go after Mandoff or Sanford (Session’s “I love you man” buddy) despite letters spelling out the obvious fraud.
Grumpy – The Bush SEC? Bernie’s fraud was pointed out to the SEC which was run by commissioners appointed by Clinton. By the time President Bush had appointed all five of the SEC Commissioners of which no more than three can be from one party, Bernie’s ponzi was starting to unravel on its own.