SEC Questions Source of Funds for $10M Gift to Michigan

The U.S. Securities and Exchange Commission has brought civil charges against Samuel Wyly and Charles Wyly, two brothers, for securities fraud. While the SEC is accusing them of hundreds of millions of dollars in gains through insider trading, one charge relates to the University of Michigan. AnnArbor.com reported that Samuel Wyly's $10 million gift in 1997 came from cash he gained through securities fraud. A lawyer for the brothers has denied wrongdoing. A spokeswoman for the university said: "Mr. Wyly has been a long-time friend and supporter of the university. We're sorry to hear he is facing these difficult circumstances."