An effort by Samuel and Charles Wyly to dismiss the suit filed by the U.S. Securities and Exchange Commission has been thrown out, clearing the way for the SEC to pursue insider trading charges against the Texas billionaires, one of whom is the namesake of the new Wyly Theater in the Arts District.
According to the SEC, the Wylys used their improper gains to acquire nearly $100 million of real estate, including two ranches in Aspen, Colorado, and a 100-acre horse farm outside Dallas; to buy tens of millions of dollars in art, collectibles and jewelry; and to make large donations to charitable causes.
The brothers built Michaels into a big arts and crafts retailer before selling it for about $6 billion in 2006 to private equity firms Blackstone Group LP and Bain Capital Partners LLC. Sterling Commerce was sold for about $4 billion in 2000 to what is now AT&T Inc. Scottish Annuity is a reinsurer now called Scottish Re Group Ltd.
