SEC's Complaint Against Billionaire Cuban


	SEC's Complaint Against Billionaire Cuban

Andrew Farrell

11-17-2008 11:53 AM

1315 views

Andrew Farrell says:

The SEC accuses Mark Cuban of avoiding big losses with a dot-com stock by selling on non-public information.

According to the SEC complaint, Mamma.com told Cuban that they would be issuing stock that would dilute the value of existing shares. Cuban allegedly agreed to keep that information confidential but then sold his stake in Mamma.com before the stock offering was revealed to the public.

According to the SEC, Cuban avoided losses of over $750,000.

1 Comment |

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11-18-2008 8:13 AM

tabsey

Greed, brings people down eventually. Moderation.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/c0898ff3-49b6-4a80-a757-8e2a86874c99/695627E4-BEB8-421E-B699-16A9E67CBEF4/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.sec.gov/news/press/2008/2008-273.htm" href="http://www.sec.gov/news/press/2008/2008-273.htm" style="font-size: 11px;">www.sec.gov</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.sec.gov/news/press/2008/2008-273.htm"><P><I>Washington, D.C., Nov. 17, 2008</I> — The Securities and Exchange Commission today charged Dallas entrepreneur Mark Cuban with insider trading for selling 600,000 shares of the stock of an Internet search engine company on the basis of material, non-public information concerning an impending stock offering.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.sec.gov/news/press/2008/2008-273.htm"><P>The Commission's complaint, filed in the U.S. District Court for the Northern District of Texas, alleges that in June 2004, Mamma.com Inc. invited Cuban to participate in the stock offering after he agreed to keep the information confidential. The complaint further alleges that Cuban knew that the offering would be conducted at a discount to the prevailing market price and that it would be dilutive to existing shareholders.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/695627E4-BEB8-421E-B699-16A9E67CBEF4/blog/" title="blog or email this clip"><img src="http://content6.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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