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Mark Cuban in trouble?

AkbarCloneAkbarClone Posts: 2,476 ✭✭✭
in Sports Talk
SEC charges Mark Cuban with insider trading


WASHINGTON (AP)—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.
I collect Vintage Cards, Commemorative Sets, and way too many vintage and modern player collections in Baseball (180 players), Football (175 players), and Basketball (87 players). Also have a Dallas Cowboy team collection.

Comments

  • ConnecticoinConnecticoin Posts: 12,868 ✭✭✭✭✭
    Geez, if he really did it, he's an idiot, like Martha Stewart with ImClone. $750k to him is like $75 to most of us.
    *For Sale on BST* *For Sale on Ebay*
  • MichiganMichigan Posts: 4,942 ✭
    Arrogant full of themselves people often do stupid things and don't think the rules apply to them. I'm not really surprised by this.
  • TheVonTheVon Posts: 2,725 ✭
    I'd like to know more about this . . . I mean, in a way, it stinks that this is considered insider trading. If I thought a stock I held was going down I'd want to sell too. If someone gave him this information without him seeking that information, what would the correct thing to do be? Does this mean that he should have held onto this falling stock forever or is there a grace period? If he waited a week and then sold, would he avoid charges?
  • MichiganMichigan Posts: 4,942 ✭


    << <i>I'd like to know more about this . . . I mean, in a way, it stinks that this is considered insider trading. If I thought a stock I held was going down I'd want to sell too. If someone gave him this information without him seeking that information, what would the correct thing to do be? Does this mean that he should have held onto this falling stock forever or is there a grace period? If he waited a week and then sold, would he avoid charges? >>




    I found this information:

    Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information. However, the term is frequently used to refer to a practice in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise in breach of a fiduciary duty or other relationship of trust and confidence or where the non-public information was misappropriated from the company.

    From this it would appear that the key factor is taking advantage of information not available to the public.
  • stevekstevek Posts: 29,037 ✭✭✭✭✭
    I haven't absorbed the info yet, but Cuban could be in bigger trouble than he may think, and the Martha Stewart example is an excellent analogy.
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