Monday, November 17, 2008

Mark Cuban was charged with civil insider-trading

Season five of Dancing with the Stars contestant/NBA's Dallas Mavericks team owner Mark Cuban is following the footstep of Martha Stewart in stock trading.

The SEC (Securities and Exchange Commission) has charged civil insider-trading charges to Mark Cuban after selling shares of an Internet company (Mamma.com) before an announcement that the company is in a transaction that will reduce the company's shares value in 2004.

By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.

It is also in the case of Martha Stewart, she was thrown to six months in prison after insider-trading.

UPDATE: Cuban via his blog, "I wish I could say more, but I will have to leave it to this, and let the judicial process do its job." The statement goes on to say the government's insider trading allegation "has no merit and is a product of gross abuse of prosecutorial discretion."

No comments:

Post a Comment