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SEC Charges Mark Cuban With Insider Trading
The complaint claims that in 2004 Cuban learned of a private offering of Mamma.com (now known as Copernic) that would decrease the value of his 600,000 shares. It says he then sold off his stake and as a result, reportedly saved $750,000. "As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential. Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares," said Scott W. Friestad, deputy director of the SEC's Division of Enforcement."It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market." Cuban has responded to the complaint and posted a brief statement on his blog Monday afternoon denying the allegations. "I am disappointed that the Commission chose to bring this case based upon its Enforcement staff's win-at-any-cost ambitions. The staff's process was result-oriented, facts be damned. The government's claims are false and they will be proven to be so," he said. The post also includes a statement from his lawyer, Ralph C. Ferrara, Esq. with Dewey Cuban, who is involved in a number of ventures and is currently trying to buy the Chicago Cubs baseball team, is also the majority partner of sharesleuth.com, an independent web-based reporting site aimed at exposing securities fraud and corporate chicanery.
Posted by: Steve White 2008-11-17 |
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