Samuel Wyly, a Texas investor, and the estate of his late brother, Charles, will go to trial this week against the SEC after years of accusations that they engaged in a $550 million fraud. Many believe that this is the biggest test the SEC will face this year in holding individuals accountable at trial. The SEC alleges that the Wyly brothers hid stock trading from 1992 to 2004 in Sterling Software Inc., Michaels Stores Inc., Sterling Commerce Inc., and Scottish Annuity & Life Holding Ltd by using offshore trusts and entities, also alleging the brothers earned $31.7 million from insider trading in Sterling Software after selling the company in 1999 .

Samuel and Charles, who has since died in a car accident, have maintained their innocence by stating that they were not the beneficial owners of the stock held in the trusts. As a result of a recent Supreme Court decision, the trial has been split into two parts. After the jury makes a decision regarding charges branching from the failure to disclose the trusts and trading in them, the second part will be heard by U.S. District Judge Shira Scheindlin, who will rule on the insider trading claims and determine any applicable penalty .