Cuban reportedly charged with Insider Trading

[jthig32]

SEC charges Dallas Mavericks owner and Internet entrepreneur Mark Cuban with insider trading related to sales of Mamma.com, now known as Copernic.

That's on the Breaking News ticker at WSJ online.

[erdubya]

Just saw on DMN that cuban has been accused of insider trading... anyone got any details on this?

"The Wall Street Journal is reporting that Dallas Mavericks owner Mark Cuban has been charged with insider trading. Details to come." - http://dallasmorningnews.com

[Underdog]

I was hoping "insider trading" had something to do with bringing a solid shooting guard to Dallas...

[Flacolaco]

Donald Trump is going to have a field day with this.

[LSMF]

Originally Posted by Underdog

I was hoping "insider trading" had something to do with bringing a solid shooting guard to Dallas...

My thoughts at first exactly

[kg_veteran]

I read the complaint filed by the SEC. It looks like Cuban is in quite a bit of trouble.

[DirkFTW]

We dislike our stocks?

[92bDad]

Anyone know how bad this is or could be?

Would it force Cuban to sale the Mavs...who knows maybe it was Stern who gave him the tip and then turned him in...now that would be a great conspiracy!!!

[LonghornDub]

It's a civil action and it says the losses he avoided are only 750k (which is chump change to Cubes). This probably won't be a big deal unless they bring criminal charges.

[u2sarajevo]

[basketballgirl25]

haha, sucks to be cuban, I have a feeling he won't go to jail though, could be wrong though

[Underdog]

Originally Posted by 92bDad

Anyone know how bad this is or could be?

Would it force Cuban to sale the Mavs...who knows maybe it was Stern who gave him the tip and then turned him in...now that would be a great conspiracy!!!

From a legal standpoint, Cuban going to jail wouldn't affect his ownership status of the Mavs one bit...

The big question is - what are the league rules?

Anyone have a clue?

[nowhereman]

http://sports.espn.go.com/nba/news/story?id=3708124

[LonghornDub]

Originally Posted by Underdog

From a legal standpoint, Cuban going to jail wouldn't affect his ownership status of the Mavs one bit...

The big question is - what are the league rules?

Anyone have a clue?

Cuban will not be going to jail. This is not a criminal charge. If he loses, he's going to have to pay the 750k + a substantial civil penalty (probably around 500k - 1 mil).

[Underdog]

Originally Posted by LonghornDub

Cuban will not be going to jail. This is not a criminal charge. If he loses, he's going to have to pay the 750k + a substantial civil penalty (probably around 500k - 1 mil).

A slap on the wrist by lightening his pockets of loose change?

It must suck being rich...

[LonghornDub]

Originally Posted by Underdog

A slap on the wrist by lightening his pockets of loose change?

It must suck being rich...

Ya, I'm sure he's really worked up about all this. It's the equivalent of the municipal court asking one of us to pay a $1,000 fine.

Now, the thing to keep your eye out for is whether federal prosecutors decide to indict him on criminal charges for this. I doubt that happens, but if it does, that's where we can start hypothesizing as to what happens if Cubes goes to jail.

[GermanDunk]

Originally Posted by Underdog

I was hoping "insider trading" had something to do with bringing a solid shooting guard to Dallas...

Under deserves rep

[erdubya]

I'm interested to see how the team is gonna respond to this "distraction" tomorrow nite.

[Underdog]

Originally Posted by LonghornDub

Now, the thing to keep your eye out for is whether federal prosecutors decide to indict him on criminal charges for this. I doubt that happens, but if it does, that's where we can start hypothesizing as to what happens if Cubes goes to jail.

Which brings me back to my question - IF Cuban goes to jail, what are the league rules concerning his ownership status of the Mavericks?

(I doubt that's easy information to find...)

[kg_veteran]

LDub is right. This is just a civil action to force Cuban to pay the avoided losses (750k) plus interest and penalties back. It won't affect his ownership of the team at all.

[Underdog]

Originally Posted by erdubya

I'm interested to see how the team is gonna respond to this "distraction" tomorrow nite.

The way the Mavs have looked lately, if they lose, how can you tell if this "distraction" had anything to do with it?

[destroy ALL]

billionaires dont go to jail.

[Flacolaco]

Every time someone types "nite" instead of "night" and "sale" instead of "sell", a puppy gets run over and u2 dies a little inside.

Just thought I'd throw that out there.

Oh and uh...Go Cuban!

[LonghornDub]

Originally Posted by destroy ALL

billionaires dont go to jail.

Martha Stewart? She's not quite a billionaire, but she's close.

[basketballgirl25]

Originally Posted by Underdog

Which brings me back to my question - IF Cuban goes to jail, what are the league rules concerning his ownership status of the Mavericks?

(I doubt that's easy information to find...)

that's a good question, and would be interesting to know, I'm sure if he did end up going to jail he prob won't be allowed to be a owner of the mavericks, the nba getd a lot of bad press and talks as it is if a owner of a team went to jail I don't think that would help much. Just my thought though, I don't really even know just guess that is what would happen

[DevinHarriswillstart]

All for 750K? Seriously, GG doesn't even make that much. If this is true, greed is just sad in this country.

This is why people are not liking wallstreet these days.

[sike]

Originally Posted by Flacolaco

Every time someone types "nite" instead of "night" and "sale" instead of "sell", a puppy gets run over and u2 dies a little inside.

So exactly how many times would I need to do it for him to die all the way?

[DevinHarriswillstart]

From DMN....

Mark Cuban charged with insider trading

11:19 AM CST on Monday, November 17, 2008
By DAVE MICHAELS / The Dallas Morning News
dmichaels@dallasnews.com

WASHINGTON – The U.S. Securities and Exchange Commission charged Mark Cuban on Monday with insider trading stemming from a 2004 sale of stock in an Internet company.

The civil lawsuit alleges that Mr. Cuban avoided losses in excess of $750,000 by selling 600,000 shares he learned would be diluted by a new stock offering. The company, Mamma.com, told Mr. Cuban about the offering on the condition that he keep the information confidential.

“Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares,” said Scott W. Friestad, the SEC’s deputy director of enforcement. “It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market.”

The complaint, filed in the Northern District of Texas, demands that Mr. Cuban forfeit the monetary losses he avoided and pay a civil penalty.

Mr. Cuban has retained Paul E. Coggins, a former U.S. Attorney for the Northern District of Texas, as his defense counsel. Neither Mr. Coggins nor his co-counsel, Ralph C. Ferrara, could be reached for comment Monday morning.

Mr. Cuban, the owner of the Dallas Mavericks, owned a 6.3 percent stake in the company, now known as Copernic Inc. At the time of the sale, he was the company’s largest-known shareholder.

Mr. Cuban was told about the stock offering through a phone call with Mamma.com’s chief executive on June 28, 2004, according to the SEC complaint.

Mr. Cuban “became very upset and angry during the conversation” because the private offering would dilute existing shareholders, according the complaint.

“Well, now I’m screwed,” Mr. Cuban told the executive. “I can’t sell.”

But Mr. Cuban later called his Dallas broker and ordered him to sell all 600,000 shares he owned. “Sell what you can tonight and just get me out the next day,” he said, according to the complaint.

Mr. Cuban liquidated his position on June 28 and June 29, before Mamma.com announced its new, private offering, the complaint says. On June 30, trading in Mamma.com opened at $11.89, down 9.3 percent from the June 29 closing price of $13.105.

[Darth Ape]

scum

[erdubya]

Originally Posted by Underdog

The way the Mavs have looked lately, if they lose, how can you tell if this "distraction" had anything to do with it?

True... but if they win, they show some (but definitely not all) of the mental fortitude we've been looking for all season. A small step in the right direction I'd say.

[MavsX]

good nite flaco and i'd like to sale you some stuff.

[Flacolaco]

Originally Posted by MavsX

good nite flaco and i'd like to sale you some stuff.

(nails on a freaking chalkboard...)

As long as it isn't insider sale-ing!

[Underdog]

Originally Posted by basketballgirl25

that's a good question, and would be interesting to know, I'm sure if he did end up going to jail he prob won't be allowed to be a owner of the mavericks, the nba getd a lot of bad press and talks as it is if a owner of a team went to jail I don't think that would help much. Just my thought though, I don't really even know just guess that is what would happen

Yeah, I don't know either, but the temptation to waste people's time reading my uneducated guess is too overwhelming for me to simply post NOTHING, so here we go:

Mark Cuban will go to Mormon Hell for 7 months (instead of jail) then have his nipples shaved off and will be forced to wear pink sun dresses to every Mavs game for the remainder of the regular season (he'll also have to sing "I'm a Little Tea Cup" every time he wants to yell at the refs - court order...)

[Darth Ape]

Originally Posted by destroy ALL

billionaires dont go to jail.

They do when it's a federal charge

[Mavdog]

that would be a federal criminal charge, which this is not.

this is a civil case, if cuban is found guilty (and from the complaint it sppears he is btw) he will have to pay money, not go to jail.

[LonghornDub]

Originally Posted by Mavdog

that would be a federal criminal charge, which this is not.

this is a civil case, if cuban is found guilty (and from the complaint it sppears he is btw) he will have to pay money, not go to jail.

You are correct, but I just wanted to note that I've rarely read a complaint where it didn't appear that the defendant was liable. It'd be a pretty ineffective and poorly written complaint if it didn't give such an impression.

I'm sure he did it, but wait until you read his answer to the complaint before you make up your mind.

[grbh]

Looks like Bruce Ratner owner of the Nets has also been charged. Evidently upon realizing he had an over age, over paid, over rated point guard he was able to trade him for a nice young player and picks prior to any public disclosure of his point guards shortcomings.

Developing...

[basketballgirl25]

Originally Posted by grbh

Looks like Bruce Ratner owner of the Nets has also been charged. Evidently upon realizing he had an over age, over paid, over rated point guard he was able to trade him for a nice young player and picks prior to any public disclosure of his point guards shortcomings.

Developing...

Bruce Ratner charged, him and Mark Cuban can go rot in Jail together, I hate both

[Underdog]

Originally Posted by basketballgirl25

Bruce Ratner charged, him and Mark Cuban can go rot in Jail together, I hate both

Did you have to duck for that joke to sail over your head or are you just really short?

[rabbitproof]

Oh how the rich stay rich aint shocking.

I agree. In the courts, Cuban is scot-free but what will Stern and the other owners want to do?