Monday, November 17, 2008
Mavericks owner Mark Cuban charged with insider trading
Dallas Mavericks owner Mark Cuban has been charged with insider trading by the Securities and Exchange Commission. The SEC is alleging that Cuban sold his 6% share in Mamma.com in 2004 when he learned about events that would lead to a stock drop the next day.
Posted by Alex B.
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Collin Gouldin, says:
ouch... I'm guessing if convicted this would mean jail time?
Verified
1 year agoLink to this comment | Suggest removal
Alex Bentley, says:
No, it's strictly a civil suit, Collin.
Staff
1 year agoLink to this comment | Suggest removal
jtmbls, says:
It's apparent that he didn't even realize what he was doing since he was blogging about it. I wonder how "inside" that information on the funding actually was if he felt no compunction about sharing it with the world.
Anonymous
1 year agoLink to this comment | Suggest removal
James Scott, says:
Alex - I'm not familiar with the legalities of this stuff, but how is this different than the case with Martha Stewart that put her in the pen for a few months?
Verified
1 year agoLink to this comment | Suggest removal
Alex Bentley, says:
Not sure, James -- they've updated the story, but there was a line in the first version stating that it was a civil case, not a criminal one. Cuban's lawyer seems to indicate as much in his statement:
"We find it incredible that given all the important issues that the SEC has to address with regard to today's economy they've sought to bring a $750,000 case relating to a he-said she-said about one trade against a person whose integrity has never been questioned before with regard to the securities markets."
Staff
1 year agoLink to this comment | Suggest removal
Mike Orren, says:
Cuban speaks: http://blogmaverick.com/2008/11/17/th...
Staff
1 year agoLink to this comment | Suggest removal
Lisa Lawrence Merritt, says:
Pending for two years and it's just now making news? Huh?
Speaking of Cuban, Desi better 'splain to Lucy....
Verified
1 year agoLink to this comment | Suggest removal
Russ Vandeveerdonk, says:
The SEC REALLY overblows and crosses a fine-line when trying to "get someone" on insider trading. I know they need to have some rules, BUT when is public, public knowledge? Hard to define. Good luck Mark, you'll be fine I think. And it is not criminal, so you all, no jail time. He'll be fine, he does a lot of good for many, so the good karma is with him.
Verified
1 year agoLink to this comment | Suggest removal
Mike Orren, says:
Cuban continues to parse out his defense via his blog:
http://blogmaverick.com/2008/11/18/se...
November 18, 2008
On behalf of
Mark Cuban
RE: SEC Civil Action in the United States District
for the Northern District of Texas, Dallas Division
The SEC knows their case centers on one telephone conversation between two individuals- 4 years ago. The SEC claims there was an agreement between these parties to the conversation to keep certain information confidential. We interviewed Guy Faure, the former CEO of Mamma.com Inc., with whom the SEC claims Mr. Cuban made an agreement. We had a court reporter transcribe the interview. There was no agreement to keep information confidential. Here is a relevant exerpt from the interview with Mr. Faure:
CHRISTOPHER CLARK :
1) Q- We spoke earlier about you were telling Mr. Cuban in words or substance : “I have confidential information for you”.
A- Right.
2) Q- Do you recall anything Mr. Cuban said in response or reply to that statement by you ?
A- No, I do not.
The SEC knows this-they have the transcript, yet they brought the case anyway. Why? Do they have a different statement from Mr. Faure ?
Why did the SEC end their multi-year investigation of Mamma.com Inc. for alleged securities laws violations days before interviewing present and former Mamma.com Inc. executives about this matter? Was the timing a coincidence? We think not.
Any inquiries respecting this release should be directed to Stephen Best at Dewey & LeBoeuf LLP (202) 346-8735.
—————————— ——————————
Stephen A. Best
Partner
Dewey & LeBoeuf LLP
1101 New York Avenue, N.W., Suite 1100
Washington, D.C. 20005
Staff
1 year agoLink to this comment | Suggest removal