Dallas Billionaires Sam and Charles Wyly Charged With $550 Million Fraud

(July 30) -- A six-year investigation culminated on Thursday when the Securities and Exchange Commission charged Dallas billionaire brothers Samuel and Charles Wyly with securities fraud violations totaling $550 million in hidden gains. According to The New York Times, the Wylys have stated, through a lawyer, that the allegations are "without merit."

Born and raised in Louisiana, Sam, 75, and Charles, 76, built their fortune through a variety of entrepreneurial ventures, including early investments in software products, the Bonanza restaurant chain, Green Mountain Energy, Dartran Inc., and Michael's arts and crafts stores. Samuel is listed at No. 937 on the Forbes' list of the world's billionaires.

As they prepare for what's likely to be a lengthy legal battle, Surge Desk offers six things to know about the brothers Wiley.

1. One brother has had prior run-ins with the SEC (among other federal agencies). SEC, we meet again! Although the charges were eventually settled, in 1979 Samuel was investigated by the agency under suspicions that he was making undisclosed payments to associates to purchase company bonds in the hopes of avoiding bankruptcy. In 1999, Samuel ran into trouble again, this time with the Internal Revenue Service, which alleged that he had withheld $2.58 million in unpaid taxes.

2. They're well-known philanthropists. Samuel and Charles have reportedly contributed over $90 million to charity since amassing their fortune, including significant donations to Louisiana Tech and the University of Michigan.

2. They're Christian Scientists. The Wyly brothers are devout members of the First Church of Christ, Scientist, founded in 1866 by Mary Baker Eddy.

3. And big-time Republican Party supporters too. The Republican Party has long been able to count on the Wyly brothers for generous donations during campaign season -- Charles, for instance, was one of George W. Bush's "Pioneers," raising more than $100,000 for his first presidential campaign. What's more, they've funded two seminal attack ads: The brothers backed the Republicans for Clean Air group that helped George W. Bush win the 2000 Republican primary against Sen. John McCain, and Samuel put up some of the money for the 2004 Swift Boat ads that criticized Democratic presidential candidate John Kerry's war record in Vietnam.

5. Sam is a published author. He wrote "1,000 Dollars & an Idea," which traces his path from his boyhood on his family's cotton farm to his adult riches.

6. It's going to take more than "1,000 Dollars & an Idea" to fight the SEC's case.