Breaking News: Mark Cuban Charged for Insider Trading

[Mo Z. Dizzle]

SEC charges Mark Cuban with insider trading

WASHINGTON (AP)—Federal regulators on Monday 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 in federal court in Dallas. The agency alleged 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 said 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 his entire stake of 600,000 shares in the search engine company before the public announcement of the offering.

By selling when he did, Cuban avoided losses exceeding $750,000, according to the SEC. At the time of the offering, Cuban was the largest known shareholder in the Montreal-based company, which later changed its name to Copernic Inc.

The SEC is seeking a court judgment against Cuban finding that he violated the antifraud provisions of the federal securities laws, an injunction against future violations, an unspecified civil penalty and restitution of the losses Cuban allegedly avoided.

Unless he is subject to an injunction, Cuban “is likely to commit such violations again in the future,” according to the SEC suit.

Attorneys for Cuban in Washington and Dallas didn’t immediately return telephone calls seeking comment.

Cuban, 50, also owns Landmark Theaters, a large national chain dedicated to independent films, and the HDNet cable television channel.

He is one of the richest people in the world, according to Forbes magazine, which pegged his net worth at $2.3 billion as of March 2007.

[Turf Hitta]

lol this type of shit is so stupid to me. Are you supposed to just take the fuckin loss even though you know about it before hand and can do something to prevent it?

[Chamillitary Click]

Cuban is the man!

this is fucked up...

[GangstaBoogy]

Now on one hand, if you know you're about to lose money, of course you're going to take the inside tip and do what it takes to save your money.

But on the other hand, this bitch ass nigga is a billionaire! Why risk jail time for $750,000? Nigga you wasted more than that on re-signing Eddie Jones last year.

[E-Crazy]

lol this type of shit is so stupid to me. Are you supposed to just take the fuckin loss even though you know about it before hand and can do something to prevent it?

yup.

[Teddy Roosevelt]

Now on one hand, if you know you're about to lose money, of course you're going to take the inside tip and do what it takes to save your money.

But on the other hand, this bitch ass nigga is a billionaire! Why risk jail time for $750,000? Nigga you wasted more than that on re-signing Eddie Jones last year.

That's not even half of what he's been fined by the NBA.

[Teddy Roosevelt]

lol this type of shit is so stupid to me. Are you supposed to just take the fuckin loss even though you know about it before hand and can do something to prevent it?

It is argued that insider trading actually lowers overall economic growth and can help fuel corruption. But I'm no expert on the subject.

[Turf Hitta]

lol this type of shit is so stupid to me. Are you supposed to just take the fuckin loss even though you know about it before hand and can do something to prevent it?

It is argued that insider trading actually lowers overall economic growth and can help fuel corruption. But I'm no expert on the subject.

Mark Cuban and Martha Stewart are not the problem with the economy, but thats a whole different thread.

[E-Crazy]

lol this type of shit is so stupid to me. Are you supposed to just take the fuckin loss even though you know about it before hand and can do something to prevent it?

It is argued that insider trading actually lowers overall economic growth and can help fuel corruption. But I'm no expert on the subject.

insider trading rules are a way to help stupid people who invested in failing things feel better for themselves by blaming someone for the demise of what they invested in.
He was quick on the draw when he heard shit was going to hit the fan, can you blame him? if you heard from a reliable source that you were going to get shot tomorrow, you would do what was necessary to protect yourself from getting shot right? not just take the loss.

[7even]

Everybody would act like that, unless he's afraid of the law. There's nothing morally wrong with this.

[Now_Im_Not_Banned]

muuufuckaz goin to jail...hahaha.