Mark Cuban Charged with Insider Trading
1-liner, Courts, Legal, NBA November 17th. 2008, 11:40amMark Cuban Busted*: For insider trading. “The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.” UPDATE: Man, it looks like Cuban could be in trouble. (Wall Street Journal)
39 Responses to “Mark Cuban Charged with Insider Trading”
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November 17th, 2008 at 11:43 am
Weak. Let him pay a fine and let’s all move on.
November 17th, 2008 at 11:43 am
What, cant I make a profit in this fucking shitstorm
/
Monopoly guy’d
November 17th, 2008 at 11:44 am
guess he wont be getting the cubs now. unless gary bettman is running baseball.
November 17th, 2008 at 11:45 am
Convenient timing.
November 17th, 2008 at 11:48 am
This is essentially why Martha Stewart spent time in federal prison.
November 17th, 2008 at 11:53 am
The article says its a “civil action”. No possibility of any prison time.
I gotta agree with mole and hernia, someone had to press this investigation. I mean, $750k and 2003? Probably the same prosecutors working on the Bond’s investigation.
November 17th, 2008 at 11:56 am
That is how these things start. There is a possibility that it could turn into a criminal prosecution. I am not saying it will happen in this case, but it is possible.
November 17th, 2008 at 11:56 am
He wasn’t getting the Cubs in the first place.
November 17th, 2008 at 11:56 am
guess he wont be getting the cubs now. unless gary bettman is running baseball.
Not a Cuban guy at all, but this pales in comparison to what Steinbrenner did over the years: (from wiki):
Campaign contributions to Nixon and pardon
The “convicted” part of Martin’s comment referred to Steinbrenner’s connection to U.S. President Richard Nixon: he was indicted on 14 criminal counts on April 5, 1974, then pleaded guilty to making illegal contributions to Nixon’s re-election campaign and a felony charge of obstruction of justice on August 23. Steinbrenner was personally fined $15,000, while his firm was assessed $20,000 for the offense. On November 27, Commissioner Bowie Kuhn suspended him for two years, but later reduced that amount to fifteen months, with Steinbrenner returning to the Yankees in 1976. U.S. President Ronald Reagan pardoned Steinbrenner on January 19, 1989, in one of the final acts of his presidency.
On July 30, 1990, Commissioner Fay Vincent banned Steinbrenner from baseball for life after he paid Howie Spira, a small-time gambler, $40,000 for “dirt” after Winfield sued him for failing to pay his foundation the $300,000[8] guaranteed in his contract. Subsequently Winfield chose to enter the Hall of Fame as a San Diego Padre. At Yankee Stadium, where a ballgame was being played, word of Steinbrenner’s banishment filtering over the transistor radios resulted in a standing ovation from title-starved fans.
November 17th, 2008 at 11:59 am
What are they gonna spend to criminally prosecute this case? Tom Noe was worth it. And Martha Stewart did much worse, involving much more money.
November 17th, 2008 at 12:00 pm
Yeah, that and lying to the feds. Cuban’s not that dumb.
November 17th, 2008 at 12:01 pm
David Stern is enjoying himself of hearty gut laugh right now.
November 17th, 2008 at 12:02 pm
Two good points by a WSJ commenter:
Also, don’t forget that Cuban is hosting his own web site demanding greater openness regarding the distribution of the $700 billion in rescue/bailout funds from the US Treasury. I’m not a conspiracy freak, but the coincidence of these facts could suggest either retribution by the government or brillant spin control by a stock manipulator.
This could also be a shakedown. “Pay a fine and avoid all the unpleasantness of a lawsuit the government can’t prove.” Faced with such situations, Mr. Cuban has a history of flamboyant responses (like matching his NBA owners’ fines with donations to charity).
November 17th, 2008 at 12:03 pm
God. the Feds have to have something better to do
November 17th, 2008 at 12:03 pm
Steinbrenner rules.
November 17th, 2008 at 12:05 pm
I’m renting JKF tonight
November 17th, 2008 at 12:11 pm
@cool:
It’s cheaper if you rent in quantity. Get all the other of Stone’s most accurate biographies, including:
The Doors
W
Nixon
The People vs Larry Flynt
Alexander
The guy is a master of taking a real person and then basically saying what he wants to about them, true or not. I hate guys like this
Regards,
Clifford Irving
November 17th, 2008 at 12:18 pm
Martha Stewart didn’t do anything illegal. She thought she might have and lied to investigators to cover it up. That was what she did time for.
I predict Cubes does some time, and then comes out lean and mean with jail muscles and gets a reality show.
November 17th, 2008 at 12:20 pm
Even more important BREAKING news: the Cuban headline has bumped “Manny Would Have Been Suspended” from ESPN.com’s top headlines! But how could this possibly be more important?
November 17th, 2008 at 12:21 pm
“civil” action. No jail. At all. Ever. Period.
November 17th, 2008 at 12:22 pm
JPQ
- So you’re saying Alexander didn’t fuck the brooding heartthrob from My So-Called Life?
November 17th, 2008 at 12:23 pm
Doesn’t work like that. Guy could be looking at jail time if you see the updated link.
November 17th, 2008 at 12:25 pm
More importantly: what the hell is Mamma.com?
November 17th, 2008 at 12:27 pm
Dont see anywhere in that complaint where is going to prison.
November 17th, 2008 at 12:28 pm
Alexander was a terrible movie. Awful.
Cool_Rick, you told me you were getting Boiler Room, now you’ve been recommended for a Oliver Stone-a-thon. Stick with Boiler Room, it’s better.
November 17th, 2008 at 12:29 pm
- So you’re saying Alexander didn’t fuck the brooding heartthrob from My So-Called Life?
@Bsanders: Sorry I had to break it to you that way. Big Al, however, did fuck the shit out of Rosario Dawson…..for real
November 17th, 2008 at 12:30 pm
We’ll see.
November 17th, 2008 at 12:31 pm
Boiler room wont arrive until thursday. JFK and Doors.
By the way, why we are investigating stupid shit from the early 2000’s, someone tell me who killed Tupac and why we are in a war in Irag.
November 17th, 2008 at 12:33 pm
“civil†action. No jail. At all. Ever. Period.
It’s another good movie for coolrick
http://www.imdb.com/title/tt0120633/
/Roger Ebert
November 17th, 2008 at 12:34 pm
The civil action by the SEC is often the first step towards criminal prosecution. I am not saying that is going to happen with Cuban, but just because the SEC first filed a civil action does not preclude a criminal complaint being filed later.
November 17th, 2008 at 12:35 pm
TBL, nowhere in your new link do I find any other information about the penalties Cuban will receive…
November 17th, 2008 at 12:36 pm
Civil Action is a dope ass book. Just remember that Travolta is in the movie.
November 17th, 2008 at 12:38 pm
Someone in Biggie and Puffy’s posse; and I don’t know what country that is or why we are fighting a war there.
November 17th, 2008 at 12:40 pm
Who cares? I still want him to own the Cubs not only as a Cubs fan, but as a person who likes a good laugh. Cubes going 1-on-1 with Selig would be domination by the former.
November 17th, 2008 at 12:41 pm
jfk is on amc this weekend
November 17th, 2008 at 12:47 pm
It was publicized weeks ago he had no shot at winning the Cubs bid and withdrew his name.
November 17th, 2008 at 12:51 pm
$750,000 is about .0003% of Cuban’s net worth. That’s amazing. If this is true, Cuban is a dumbass. A moron. Dumber than Selig.
November 17th, 2008 at 1:00 pm
Man I cant wait till the SEC Championship.
November 17th, 2008 at 1:02 pm
@ Otter
Cuban isn’t dumb. Unfortunately, there is such a fine line of insider trading/good information that the rule is almost a joke in itself. The mere fact that they’re bringing up 4 year old charges just shows the SEC is making itself look like it’s doing something.