[Wall Street Journal] SEC charges Mark Cuban with insider trading

Keith Van Horn is shocked.

 

SEC Accuses Mark Cuban of Insider Trading

http://www.sec.gov/news/press/2008/2008-273.htm

Washington, D.C., Nov. 17, 2008 — The Securities and Exchange Commission today charged Dallas entrepreneur Mark Cuban with insider trading for selling 600,000 shares of the stock of an Internet search engine company on the basis of material, non-public information concerning an impending stock offering.

The Commission's complaint, filed in the U.S. District Court for the Northern District of Texas, alleges that in June 2004, Mamma.com Inc. invited Cuban to participate in the stock offering after he agreed to keep the information confidential. The complaint further alleges that Cuban knew that the offering would be conducted at a discount to the prevailing market price and that it would be dilutive to existing shareholders.

Within hours of receiving this information, according to the complaint, Cuban called his broker and instructed him to sell Cuban's entire position in the company. When the offering was publicly announced, Mamma.com's stock price opened at $11.89, down $1.215 or 9.3 percent from the prior day's closing price of $13.105. According to the complaint, Cuban avoided losses in excess of $750,000 by selling his stock prior to the public announcement of the offering.

"Insider trading cases are a high priority for the Commission. This case demonstrates yet again that the Commission will aggressively pursue illegal insider trading whenever it occurs," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement.

Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement, said, "As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential. Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares. It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market."

The complaint alleges that Cuban violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission's complaint seeks to permanently enjoin Cuban from future violations of the federal securities laws, disgorgement (with prejudgment interest), and a financial penalty.

 

Clutch Crew failure?!?!?!?!

The world is ending.

 

Mavs suck...

 

my first thought is to come here and see everybody else's reaction..

looks like mavs are getting more trouble everyday

 

So much for Cuban owning the Cubs.

 

http://online.wsj.com/article/SB122693827604333637.html

 

Mark Cuban is an idiot.

He deserves this. His arrogance precedes him.



secchairmanSAGE

 

not surprised. He should send video to the league office protesting his innocence.

 

$750,000, he's paid more than that in fines to the NBA.

 

[ESPN]Cuban charged for insider Trading

HERE IS THE ACTUAL COMPLAINT
http://www.sec.gov/litigation/complaints/2008/comp20810.pdf

 

http://www.sec.gov/news/press/2008/2008-273.htm

 

I've realized that he's a fraud since 05 playoff matchup against Mavs,period.

 

There's also an NBA Forum thread in which I posted. I FAILed too.

 

Don't worry we all get a little excited about being able to release bad info about the Mavs.

 

I'm no lawyer, but the fact that the SEC filed a civil action does not make this a "civil suit"

of course he faces jail time.

SEC: yeah, no problem Mark, just pay us back and we are all squared up

lol

 

I know I'm not the only one who was thinking SEC as in college football.

Man up!

 

Good riddance. I hope he gets jail time.

 

he wont go to jail... just have to pay back earnings. 750K to cuban is like a penny to us.

 

so cuban was willing to break the law for a penny