SEC’s fraud case against Wyly brothers may be strong, experts say
By ERIC TORBENSON
The Dallas Morning News
August 8, 2010
The Wylys likely violated the federal laws governing stockholder disclosures, said Ronald Colombo, a law professor at Hofstra University School of Law who recently published research on the disclosure law and its history. What that means in terms of penalty isn’t clear; typically violators are required to simply disclose their positions accurately and possibly pay a fine, Colombo said.
“It’s pretty rare that the SEC goes after anybody just for failing to correctly disclose their positions,” he said. “They usually bring it with other allegations,” because the consequences usually aren’t that dire for failing to disclose ownership of shares.
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