Would Mark Cuban look good in stripes?

[Pick6]

SEC Accuses Dallas Mavericks Owner of Insider Trading

Monday, November 17, 2008


WASHINGTON — DEVELOPING: Federal regulators have charged Dallas Mavericks owner Mark Cuban with insider trading for allegedly using confidential information on a stock sale to avoid more than $750,000 in losses.

The Securities and Exchange Commission filed a civil lawsuit against Cuban on Monday in federal court in Dallas. The agency says that in June 2004, Cuban was invited to get in on the coming stock offering by Mamma.com Inc. after he agreed to keep the information private.

The SEC says Cuban knew the shares would be sold below the current market price, and a few hours after receiving the information, told his broker to sell all shares in the search engine company.

This is a developing story. Refresh page for updates.

Link (http://www.foxnews.com/story/0,2933,453127,00.html)

[Maroon87]

As much as he loves NBA refs, him having to wear stripes would be quite the irony.

[crzyjournalist03]

seems like they just want him to fork over the money that he would have lost the next day without the inside knowledge. I haven't seen any mention of possible jail time.

[Emerson1]

I don't see why it's a crime. Didn't get it with Martha Stewart either

[jason]

Originally posted by Emerson1
I don't see why it's a crime. Didn't get it with Martha Stewart either she went to jail for lying to authorities, not for insider trading....

if cuban did in fact do this, and then fesses up to it, he will be fined and have to pay back what he would have lost....

if he did it, and lies, he could be in jail for a few months....

[coach]

Originally posted by Emerson1
I don't see why it's a crime. Didn't get it with Martha Stewart either

bc its against the law..its a scam to get info like that to make money..if everyone could do that there would be no point in the stock market

[Farmersfan]

Originally posted by jason
she went to jail for lying to authorities, not for insider trading....

if cuban did in fact do this, and then fesses up to it, he will be fined and have to pay back what he would have lost....

if he did it, and lies, he could be in jail for a few months....



There obviously must be more to this story than this. I have to ask that if insider trading is not legal then why is it legal for a company to intentionally do something that will cause their stock to lose value and therefore cost stockholders money. I understood this was a stock re-issue. If it was then the stock holders value is unaffected. If the stock price is cut in half all existing stockholders are issued twice as many shares. Stock purchases are made with the intent to make money and it is a given the company will do what is needed to maintain their value. anything the company does that intentionally costs a stockholder money should be considered is fraud...................

[Txbroadcaster]

Originally posted by coach
bc its against the law..its a scam to get info like that to make money..if everyone could do that there would be no point in the stock market


I am sorry but if someone informed me my stock would be undersold or split which would devalue them and cause me to lose money I would not just to sit there and go oh well.

[coach]

Originally posted by Txbroadcaster
I am sorry but if someone informed me my stock would be undersold or split which would devalue them and cause me to lose money I would not just to sit there and go oh well.

lol its not like that...hell if that was the case half of america would be locked up....my dad is a stock broker i will ask him what the difference in this and insider trading is..he should know more about it...

[Txbroadcaster]

Originally posted by coach
lol its not like that...hell if that was the case half of america would be locked up....my dad is a stock broker i will ask him what the difference in this and insider trading is..he should know more about it...


The difference is because Cuban knew something the general public did not know but again I dont blame him for selling

[Farmersfan]

Insider trading is generally considered the practice of using non-public information about a company to profit off stock market activities. If Mark Cuban used information to "PREVENT" a loss then i would call that smart business. He has enough money he could beat this rap in court. I guess what I am saying is that it seems common sense would say even the SEC should not have the ability to say that you must lose money just like everyone else did or would.

[Farmersfan]

Originally posted by Txbroadcaster
The difference is because Cuban knew something the general public did not know but again I dont blame him for selling



I again have to say that every man has the right and responsibility to "Save his own skin" so to speak. That's why I say there is something we don't know about. Perhaps Cuban was using this secret knowledge to protect a large amount of profit he had already gotten.

[Farmersfan]

This is what the company wanted to get into that made Cuban sell his shares.


http://www.investopedia.com/terms/p/pipe.asp

[BreckTxLonghorn]

It's a civil suit, there's no jail time involved unless it can be determined that he knowingly lied under oath during the course of the case.

[eagles_victory]

How did this get moved to the non sports forum? If Cuban didnt own the Mavericks noone would care about this to me that makes it sports.