Mark Cuban, chairman of HDNet and owner of the Dallas Mavericks basketball team, was charged with insider trading on November 17, 2008. The Securities and Exchange Commission filed a civil suit against Cuban for allegedly selling shares for the small Internet search company, Mamma.com, just before the stock price fell. Cuban was said to have saved himself a loss of $750,000.NY Times: Cuban Is Charged (November 17, 2008)
Quotes
"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."—Mark CubanNY Times: Cuban Is Charged (November 17, 2008)
"Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential. Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares. It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market."—Scott W. Friestad, SEC’s deputy directorNY Times: Cuban Is Charged (November 17, 2008)
References
Fast Facts
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Fact:
The SEC filed suit against Cuban on November 17, 2008NY Times: Cuban Is Charged (November 17, 2008)
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The suit was filed in the United States District Court in DallasNY Times: Cuban Is Charged (November 17, 2008)
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Fact:
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Cuban is charged with selling 600,000 shares of Mamma.com stock before the price fellNY Times: Cuban Is Charged (November 17, 2008)
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Fact:
Cuban was said to have avoided a loss of $750,000 by selling the sharesNY Times: Cuban Is Charged (November 17, 2008)
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Cuban stated that the SEC was "infected by the misconduct of the staff of its enforcement division"NY Times: Cuban Is Charged (November 17, 2008)
