Mark Cuban Charged With Insider Trading In Mamma.com Deal
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SEC Files Insider Trading Charges Against
Cuban Over Sale Of Mamma.com Shares |
The SEC has "filed insider trading charges" against Mavericks Owner MARK CUBAN for "allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering," according to Kara Scannell of the WALL STREET JOURNAL. The SEC alleges in a civil action that 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." By selling his stake, the SEC alleges Cuban "avoided more than $750,000 in losses." Mamma.com is currently doing business as Copernic.com (WSJ.com, 11/17). Fox Business’ Brian Sullivan reports the complaint alleges Cuban “took a cell phone call … at the American Airlines Arena” from the CEO of Copernic, and Cuban “got very angry, saying he couldn’t sell.” Sullivan: “This is a civil complaint and what the SEC wants is … Cuban to give back (the $750,000 in potential losses) with interest and agree not to do something like this again. It is a civil, not a criminal complaint.” Cuban’s portion of the stake amounted to about 600,000 shares (Fox Business, 11/17). ESPN’s Roger Cossack noted Cuban “has not been charged or indicted, as I see it yet, in a criminal complaint. That is a possibility, but it hasn’t happened yet.” Cossack added the SEC complaint probably will not have much impact on the daily running of the Mavericks because “this is a personal problem that he made that has nothing to do with the Dallas Mavericks” (“SportsCenter,” ESPN, 11/17). Cuban has retained PAUL COGGINS, a former U.S. Attorney for the Northern District of Texas, “as his defense counsel” (DALLASNEWS.com, 11/17).
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