Mark Cuban charged with insider trading

[KLin]

Originally posted by: Wreckem

Originally posted by: KLin
http://www.reuters.com/article.../idUSTRE4AG5IM20081117

He's being charged now by the SEC.

Its still only a civil complaint.

Cuban will pay a million or two. Insider traders typically only get charged criminally when they try to cover it to the SEC. Marther Stewart did time for the coverup, not for the insider trading.

You're right, my bad 😱. Whatever fine they levy is going to be chump change to him, but it probably does put in jeopardy his bid to buy the cubs.

 

[darkxshade]

$1.5 million fine if he loses and no criminal charges... that's pocket change for him though I'd still be bummed at a loss of 1.5mil.

 

[Atrail]

Cuban Response blogmaverick.com

 

[SlowSpyder]

Originally posted by: senseamp

Originally posted by: tboo

Originally posted by: senseamp
Plus he's a big Obama supporter, looks like Republicans settling political scores before leaving.

Yeah, thats it :roll:

Well, Martha Stewart was a big Democrat supporter too. They seem to be singled out by prosecution. If you don't think this administration has politicized various federal agencies, you are delusional.

Wow...

 

[AmdInside]

After looking at the website, I can't believe anyone would invest $1 in mamma.com. He should pay a lot for being an idiot.

 

[Babbles]

Originally posted by: senseamp
It's another Martha Stewart type prosecution to make it look like they are doing something while they ignore the much bigger abuses on Wall Street.

I think they are looking for some sort of 'fall guy' to slap around and look proactive.

I found THIS LINK which contains an alleged email from some SEC guy to Mark Cuban which seems to me that there must be some interesting back-story and Mark Cuban is being punished for something not even remotely related to his business dealings.

 

[HopJokey]

Originally posted by: Babbles

Originally posted by: senseamp
It's another Martha Stewart type prosecution to make it look like they are doing something while they ignore the much bigger abuses on Wall Street.

I think they are looking for some sort of 'fall guy' to slap around and look proactive.

I found THIS LINK which contains an alleged email from some SEC guy to Mark Cuban which seems to me that there must be some interesting back-story and Mark Cuban is being punished for something not even remotely related to his business dealings.

Heh payback sucks.

What will probably happen is that Cuban gets a slap on the wrist with a fine. The worse thing that happens to Cuban is that MLB has a reason to deny his purchase of the Chicago Cubs.

 

[Bill Brasky]

Well that's a shitty deal. "You're gonna loose 750k tomorrow, but its illegal for you to sell now." Why the hell would someone tell him?

 

[preslove]

What an idiot. He should have just had his mother in law buys some put options to cover his loss. Hell, he could have doubled his investment & the SEC wouldn't have known shit.

 

[conehead433]

Gonna cost him a million or more. Chump change for him. Just don't do like Martha, plead no contest and pay.

 

[sjwaste]

Originally posted by: senseamp
It's another Martha Stewart type prosecution to make it look like they are doing something while they ignore the much bigger abuses on Wall Street.

No it isnt.

I'm not a securities lawyer, but it is my concentration in law school. What he did was pretty boneheaded. Martha Stewart at least had a little bit of plausible deniability, but Cuban doesn't. He sold his shares because he was pissed that Copernic was going to dilute his value, and moreso because they'd be doing it at a discount to market.

This is almost a textbook 10b-5 violation. It's not in the complaint, so I'm going to guess his only potential defense is that he had no duty to disclose the information and therefore does not have tippee liability. He doesn't meet the 10% threshold of a statutory insider, but with over 5%, getting a personal call from the CEO, and agreeing that he would not disclose the information, it's a pretty blatant offense.

This is nothing. I'd bet that the DOJ is also investigating (SEC can't file criminal charges, only civil and administrative). They have some clever tactics in being privvy to the civil discovery process, sometimes even using the SEC to investigate by filing like this and then having the civil discovery documents passed through. Courts have frowned on this, but haven't completely slammed the door on it.

I'm not writing a treatise here, nor am I qualified to do that in the first place, and I know I'm leaving out some detail here. However, Cuban would be very wise to settle this if he can.

 

[sjwaste]

Originally posted by: tfinch2
Civil suit? So no jail time? Damnit...

See my last post. SEC can only file civil and administrative actions. The DOJ has exclusive authority to prosecute under the federal securities laws, along with pendent state jurisdiction under their respective laws (if not preempted, probably are here).

 

[sjwaste]

Originally posted by: TallBill

Originally posted by: Cal166
http://finance.yahoo.com/news/...ban-cnnm-13594659.html

"As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential," said Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement. "Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares."

Coincidentally this is the most advertising that the firm will ever see, for the low price of $0.

I've never even heard of mamma.com before this. Not that I'll start using it now.

They changed their name to Copernic. I think it was a crappy search aggregator, had a standalone desktop client. Or that was something else w/ the same name.

Either way it sucked, like Mark Cuban 🙂