Tuesday, 27 September 2016
Last updated 37 min ago
Aug 2 2010 | 6:24am ET
While Maverick Capital Management co-founder Samuel Wyly has been accused of a $550 million fraud by the Securities and Exchange Commission, the hedge fund is not under investigation, it told investors.
Dallas-based Maverick moved quickly to quell investor concerns after Wyly and his brother, Charles, were hit with the charges, which accuse them of hiding assets and insider trading. But while the SEC alleges that the Wylys diverted some of their ill-gotten gains to Maverick and another hedge fund founded by Samuel Wyly, Ranger Capital, Maverick is not a subject of the probe, Reuters reports.
The Wylys have denied any wrongdoing and pledged to fight the SEC lawsuit, which was filed on Thursday.
Samuel Wyly left Maverick 15 years ago to found Ranger Capital, leaving the $11 billion hedge fund in the hands of co-founded Lee Ainslie. Both brothers continues to invest with the hedge fund, although their investment with the firm is not said to be significant to Maverick.
Samuel Wyly’s son, Evan, another co-founder of the fund, continues to own a stake in Maverick but has no day-to-day role at the hedge fund.