Cuban Charged with insider trading

[dez]

WASHINGTON -- Federal regulators have charged Dallas Mavericks owner Mark Cuban with insider trading for allegedly using confidential information on a stock sale to avoid more than $750,000 in losses.

The Securities and Exchange Commission filed a civil lawsuit against Cuban on Monday in federal court in Dallas. The agency says that in June 2004, Cuban was invited to get in on the coming stock offering by Mamma.com Inc. after he agreed to keep the information private.

The SEC says Cuban knew the shares would be sold below the current market price, and a few hours after receiving the information, told his broker to sell all shares in the search engine company.

"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," Scott W. Friestad, deputy director of the SEC's Division of Enforcement, said in a statement. "It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market."

To read the full complaint, click here.

Information from The Associated Press was used in this report

LINK

I just popped up on ESPN as Breaking News so Im sure much more will come to light...

 

[MapleLeaf]

meh, nothin big. doesn't impact the team at all and i doubt cuban gets in much trouble.

 

[dez]

Yeah there saying right now the worst that can happen is he'll have to pay back what me made, which is pocket change to him.

 

[Sabbath]

Yeah there saying right now the worst that can happen is he'll have to pay back what me made, which is pocket change to him.

The precursor has been set with Martha Stewart. Cuban should recieve jail time and/or a fine that very much exceeds what he should've lost.

 

[MapleLeaf]

he won't receive jail time. Martha Stewart got sent to jail because of perjury, not because of insider trading. Like dez said, if he is truthful, worst he has to do is pay the 750,000 and he is the 161st richest man in the world so it's not like 750,000 is that much for him. He's paid more fines in the NBA then that