The complaint alleges that French utilized his roles as the Wylys’ lawyer and fellow director on three of the four Issuers’ boards to cover the Wylys’ scheme with a false cloak of legality that was essential both to its concealment and to its execution. The complaint further alleges that French’s assistance to the Wylys’ scheme continued during French’s tenure as Scottish Re’s Chairman, when the Wylys, who had left Scottish Re’s board, continued covertly to hold more than 5% of its outstanding stock. According to the complaint, French also established offshore entities of his own, which he used to control and to trade Issuer Securities without disclosing his own ownership or trading as required by law..
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