Dallas Mavericks owner Cuban charged with insider trading

[Grizbacker1]

Dallas Mavericks owner Cuban charged with insider trading
Monday November 17, 2008, 11:51 am EST

Entrepreneur Mark Cuban, owner of the National Basketball Association's Dallas Mavericks, was charged Monday by the Securities and Exchange Commission with insider trading.

According to the SEC, Cuban sold 600,000 shares of Internet search company Mamma.com in June 2004 using non-public information. Cuban is accused of calling his broker and instructing him to sell all of his stock from the Mamma.com after receiving confidential information from the company.

The SEC said Cuban knew the stock price was about to fall.

The next day, the stock fell 9.3%, and Cuban avoided losses in excess of $750,000 by selling stock the day before, the SEC report said.

"As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential," said Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement. "Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares."

Efforts to reach Cuban for comment were not immediately successful.

 

[GRZFTBL]

A Billionaire saving 3/4 of a million $$$: Priceless.

 

['68griz]

That's probably how he got to be billionaire, saving those nickels and dimes.

 

[grizpack]

Here is his response, through his attorney. Classic:



I wish I could say more, but I will have to leave it to this, and let the judicial process do its job.
November 17, 2008
RE: SEC Civil Action in the United States District

for the Northern District of Texas, Dallas Division

Mark Cuban today responded to a civil complaint filed by the United States Securities and Exchange Commission in the United States District for the Northern District of Texas, Dallas Division. In its complaint, the Commission charges that Mr. Cuban engaged in violations of the federal securities laws in connection with transactions in the securities of Mamma.com Inc.

This matter, which has been pending before the Commission for nearly two years, has no merit and is a product of gross abuse of prosecutorial discretion. Mr. Cuban intends to contest the allegations and to demonstrate that the Commission’s claims are infected by the misconduct of the staff of its Enforcement Division.

Mr. Cuban stated, “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.”
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Ralph C. Ferrara, Esq.

Dewey & LeBoeuf LLP

1101 New York Avenue, N.W., Suite 1100

Washington, D.C. 20005