Dallas billionaire investor Sam Wyly wrote in his book 1,000 Dollars and an Idea that “the world owes a debt of gratitude” to junk bond king Michael Milken. Wyly is now on trial in the very same federal courthouse in New York where Milken pleaded guilty 24 years ago this month to financial fraud and insider trading.
The SEC accuses Wyly and the estate of his deceased brother, Charles Wyly, of profiting more than $550 million from an elaborate fraud that violated insider-trading laws through the use of offshore trust accounts. Securities lawyers in Texas say the SEC has a lot riding on the outcome of the trial.