Sam and Charles Wyly were charged today by the SEC with securities fraud. The SEC says they made $550 million, according to Dealbook. But they spent the money well—on art:

Most of the activity in both the insider trading and the securities fraud cases were conducted in the stocks of companies where the Wyly bothers served as directors or executives, including Michaels Stores, Sterling Software, Sterling Commerce and Scottish Annuity and Life Holdings.

The ill-gotten gains, according to the S.E.C., were used to buy tens of millions of dollars of art, collectibles and jewelry; $100 million of real estate, including two ranches in Aspen, Colo., and a 100-acre horse farm near Dallas; and to make charitable contributions, including $10 million to the business school at Sam Wyly’s alma mater, the University of Michigan.

Wyly Brothers Charged with $550 Million Fraud (Dealbook/New York Times)