GOP donors accused of reaping $550 million through fraud

Two Texas businessmen, Charles Wyly Jr. and Samuel Wyly, are being accused of massive fraud by the Securities and Exchange commission. You can read the SEC complaint here, but the short version is the brothers are accused of funneling some $750 million worth of stock in four companies the two owned through a byzantine series of companies and accounts in the Cayman Islands and Isle of Man. They are also charged with an insider trading violation that is said to earned them $32 million. In total, they are alleged to have reaped $550 million in profits.

As it happens, the Wylys are some of the top Republican donors in the country, according to the Center for Responsive Politics:

Together with their wives, the Wyly brothers have donated nearly $2.5 million to Republican candidates and committees during the past 20 years, a Center for Responsive Politics analysis reveals.

During the past 20 years, Charles and Dee Wyly have donated $855,150 to the Republican National Committee, while Samuel and Cheryl Wyly donated $483,900 to the RNC, the Center’s research indicates.

Both brothers have also contributed more than $100,000 each to the National Republican Senatorial Committee. The National Republican Congressional Committee, meanwhile has received $106,000 and $54,500 from Samuel Wyly and Charles Wyly respectively.

As recently as June 10, Charles Wyly made a $10,000 contribution to the Republican Congressional Campaign Committee.