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Wyly Brothers Found Liable In $550 Million SEC Fraud Trial

The news is just trickling out. Joseph Guinto wrote a story for the magazine last year about the case. He’ll be along in a bit to share some thoughts.

  • Jackson

    Soon after the SEC finally filed suit in 2010, Sam gave an obstinate interview to the NY Times from his beautiful Colorado vacation home, in which he openly mocked the SEC, basically giving them the finger. That’s something his more conservative brother Charles (who was still alive but didn’t participate in the interview) would not have done. “I can tell you one thing,” Sam told the Times in that twang of his. “They gonna lose. They gonna get nothing.” Then his eyes brighten and he leaned back in his chair. “Tee-hee-hee-hee!”

    The government lawyers who Sam was mocking probably make $130,000 a year. If anything, he incentivized them unnecessarily with his cockiness. The Wyly’s lead lawyer, Steve Sussman out of Houston, makes millions a year and bills at something like $800 an hour. Still, to paraphrase Shakespeare, Hell hath no fury like a government lawyer scorned.