US files civil charges in Cayman Islands insider trading scheme
WASHINGTON, USA (AFP) — US market regulators on Thursday accused two Texas businessmen in a huge insider trading scheme involving Cayman Islands trusts and companies, saying they reaped undisclosed gains of 550 million dollars.
The Securities and Exchange Commission filed civil charges against brothers Samuel Wyly and Charles Wyly Jr. of Dallas, saying they violated federal securities laws governing ownership and trading of securities by corporate insiders.
The SEC said the brothers "reaped more than 550 million dollars in undisclosed gains while sitting on corporate boards by trading stock in those public companies through hidden entities located in foreign jurisdictions to conceal their ownership and trading of those securities."
The agency said the brothers created an elaborate sham system of trusts and subsidiary companies in the Isle of Man and the Cayman Islands to sell more than 750 million dollars worth of stock in four public companies for which they were corporate directors and committed an insider trading violation for an unlawful gain of more than 31.7 million dollars.
The SEC charged also their attorney Michael French of Dallas and their stockbroker Louis Schaufele of Dallas for their roles in the scheme.
"The cloak of secrecy has been lifted from the complex web of foreign structures used by the Wylys to evade the securities laws," said Lorin Reisner, deputy SEC enforcement chief.
"They used these structures to conceal hundreds of millions of dollars of gains in violation of the disclosure requirements for corporate insiders."
The SEC complaint said the scheme centered on publicly traded firms Michaels Stores Inc., Sterling Software Inc., Sterling Commerce Inc., and Scottish Annuity & Life Holdings Ltd.
According to the SEC’s complaint, the Wylys exploited their insider knowledge of Sterling Software in October 1999 to reap an illicit gain for 31.7 million dollars.
Source: Caribbean Net News
They are ordinary, middle-class Mexicans – computer technicians, police officers and engineers – who went to work one day and never came home. They are Mexico’s missing – and unlike many of the 50,000 killed in the country’s drug wars, they have no direct links to organized crime, drug traffickers or their internecine rivalries. They [...]
Life, liberty…and the pursuit of supersized sodas? New York Mayor Michael Bloomberg’s proposal to limit the serving size of sugary soft drinks in the city’s restaurants, movie theatres and sports venues has provoked a national political debate about just how far government should go to regulate human behaviour. Only in America could the Big Gulp [...]
Dozens of women in form-fitting skirts and brightly coloured blouses climb onto chairs, teetering in their platform sandals. They hold iPads up over the heads of the crowd, so as not to miss the arrival of the man widely expected to be Mexico’s next president. Others jostle for front-row spots in the convention centre in [...]
The family of Amy Winehouse has put the late singer’s London home up for sale for £2.7-million ($4.3-million Cdn). The three-bedroom property in the Camden neighborhood of northwest London had become a shrine of sorts for mourning fans who left flowers and tributes after the singer’s death last July from alcohol poisoning. Chris Goodman, a [...]
China and the Philippines are currently engaged in a standoff at Scarborough Shoal in the latest round of tensions between coastal states over competing claims to valuable ocean space in the South China Sea. As the Canadian government shifts its focus toward Asia, the South China Sea dispute presents a challenge for Canada’s re-engagement with [...]
Defence Minister Ehud Barak abruptly proposed on Wednesday that Israel consider “unilateral action” if long-stalled peace talks with the Palestinians don’t resume and produce a deal — suggesting Israel may be thinking of withdrawing from part of the West Bank, as it did from the Gaza Strip seven years ago. Echoing sentiments voiced Tuesday Prime [...]
Judges at an international war crimes court have sentenced former Liberian president Charles Taylor to 50 years prison following his landmark conviction for supporting rebels in Sierra Leone who murdered and mutilated thousands during their country’s brutal civil war. The Special Court for Sierra Leone found Mr. Taylor guilty last month on 11 charges of [...]