SEC Claims Cuban Engaged in Insider Trading in '04

From the Securities and Exchange Commission this morning: "The Securities and Exchange Commission announced that it filed insider trading charges today against Dallas entrepreneur Mark Cuban in the U.S. District Court for the Northern District of Texas." The suit -- which can be read in its entirety here -- alleges...

By Robert Wilonsky

November 17, 2008

[
        {
          "name": "Air - MediumRectangle - Inline Content - Mobile Display Size",
          "component": "18855504",
          "insertPoint": "2",
          "requiredCountToDisplay": "2"
        },{
          "name": "Editor Picks",
          "component": "17105533",
          "insertPoint": "4",
          "requiredCountToDisplay": "1"
        },{
          "name": "Inline Links",
          "component": "18349797",
          "insertPoint": "8th",
          "startingPoint": 8,
          "requiredCountToDisplay": "7",
          "maxInsertions": 25
        },{
          "name": "Air - MediumRectangle - Combo - Inline Content",
          "component": "17105532",
          "insertPoint": "8th",
          "startingPoint": 8,
          "requiredCountToDisplay": "7",
          "maxInsertions": 25
        },{
          "name": "Inline Links",
          "component": "18349797",
          "insertPoint": "8th",
          "startingPoint": 12,
          "requiredCountToDisplay": "11",
          "maxInsertions": 25
        },{
          "name": "Air - Leaderboard Tower - Combo - Inline Content",
          "component": "17105535",
          "insertPoint": "8th",
          "startingPoint": 12,
          "requiredCountToDisplay": "11",
          "maxInsertions": 25
        }
      ]

From the Securities and Exchange Commission this morning: "The Securities and Exchange Commission announced that it filed insider trading charges today against Dallas entrepreneur Mark Cuban in the U.S. District Court for the Northern District of Texas." The suit -- which can be read in its entirety here -- alleges that in June 2004, the owner of the Dallas Mavericks ditched "his entire 600,000 share position in Mamma.com on the basis of material, non-public information concerning an impending PIPE (private investment in public equity) offering by the company." Among other things sought by the feds: the $750,000 Cuban allegedly saved by selling before the PIPE was offered and a civil penalty. --Robert Wilonsky

Update: Cuban responds to the SEC's filing on BlogMaverick: "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.”

KEEP THE OBSERVER FREE... Since we started the Dallas Observer, it has been defined as the free, independent voice of Dallas, and we'd like to keep it that way. Your membership allows us to continue offering readers access to our incisive coverage of local news, food, and culture with no paywalls. You can support us by joining as a member for as little as $1.