This sort of thing happens a lot, but nobody ever says anything. But wow is all I have to say I can't believe Mark Cuban actually got caught doing with insider trading. It is very hard to actually catch someone red handed with insider trading. And they get one of the bigger fishes in the pond too. I have only traded stock activley for about a year now and I see why it is so tempting to do something that would be a sure thing and put some coin in your pocket. I have no way to do it though so loo elsewhere, plus I have lost over 50% of my value over that last 6 months anyways.
Article Below
The Securities and Exchange Commission has charged Dallas Mavericks owner Mark Cuban with insider trading.
The reported charge relates to Cuban's alleged selling of 600,000 shares of the search engine Mamma.com just before they were about to become diluted in June 2004.
The company now does business as Copernic.
From the SEC release:
"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.
Within hours of receiving this information, according to the complaint, Cuban called his broker and instructed him to sell Cuban's entire position in the company. When the offering was publicly announced, Mamma.com's stock price opened at $11.89, down $1.215 or 9.3 percent from the prior day's closing price of $13.105. According to the complaint, Cuban avoided losses in excess of $750,000 by selling his stock prior to the public announcement of the offering."
Cuban -- who made his fortune by inventing and selling Broadcast.com -- had been in the running to buy the Chicago Cubs from Tribune Co.
Cuban writes a blog on a number of topics, including the economy.
-- Frank Ahrens
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