It’s just not insider trading.

U.S. District Judge Shira Scheindlin in New York said the Securities and Exchange Commission failed to show that the Wylys possessed material nonpublic information when they executed $40 million of offshore swap transactions in October 1999 involving a company they controlled, Sterling Software.

In May, a federal civil jury found Sam Wyly and the estate of Charles Wyly liable on nine other counts, including fraud for using a secret network of offshore trusts….

Despite Friday’s ruling, the Wylys still face a potentially massive amount of damages based on the jury verdict….

The insider trading allegations centered on whether the Wylys had already decided to sell Sterling Software when they executed transactions involving shares of the company in October 1999, allowing them to profit when it was sold a few months later.

But Scheindlin said the Wylys took no concrete steps to sell the company until after the trades had been completed.

“While it is difficult to draw the line between inchoate desire and something more material, that line must be drawn somewhere,” she wrote.

Texas tycoon Wyly found not liable for insider trading [Reuters]

7 comments (hidden to protect delicate sensibilities)
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Comments (7)

  1. Posted by Quant me maybe... | July 14, 2014 at 10:55 AM

    What does is mean to "hidge" a stock sale?

    >Guy who thought he was up on the jargon.

  2. Posted by His Munificence | July 14, 2014 at 11:13 AM

    dadgummit Shazzy, you are a colossal embarassment

  3. Posted by InfiniteGuest | July 14, 2014 at 11:17 AM

    Strine?

  4. Posted by kiwi trader | July 14, 2014 at 11:31 AM

    Hedging on the Auckland exchange.

  5. Posted by Macquarie FICC | July 14, 2014 at 11:32 AM

    Isk me. Ay naye.

  6. Posted by Chubby Cobra | July 14, 2014 at 11:43 AM

    Elaborate Shazzam System

  7. Posted by Det. Stabler | July 14, 2014 at 1:39 PM

    What the hell is the statute of limitations on this?