Monday, November 17, 2008

SEC Accuses Mark Cuban Of Insider Trading

The Securities and Exchange Commission (SEC) said Monday morning that it has charged Dallas entrepreneur Mark Cuban with insider trading. According to the SEC, it claims that Mark Cuban sold 600,000 shares of stock of an Internet search engine company, Mamma.com, after learning that the firm would conduct a stock offering which would be dilutive to existing shareholders. The SEC said the trade occurred in June of 2004, and helped Cuban avoid losses in excess of $750,000. The SEC is looking for permanently enjoin Cuban from future violations of the federal securities laws, disgorgement, and a financial penalty in the case.