Mark Cuban: Charged With Insider Trading
If you’ve been reading Mark Cuban’s blog over the last few months, then you know that he’s spent a lot of time discussing the stock market and the meltdown on Wall Street. Well, now it looks like he may have gotten himself into some hot water with the SEC.
Sayeth the Wall Street Journal:
The Securities and Exchange Commission filed insider trading charges against Mark Cuban, the outspoken owner of the Dallas Mavericks, for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering.
The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.
Suddenly, the Mavs’ problems on the court (and the Starbury flirtation) don’t seem like such a big concern now.
Cubes issued the following statement in light of today’s news: “I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”