Save Me, Mamma!
Mark Cuban, the oft-troubled, somewhat infamous owner of the Dallas Mavericks basketball team, has found himself in some deep hot water.
For all the trouble Cuban has been in with the NBA, it’s the SEC he really should be worried about (no, not the Southeastern Conference, and whether or not he might be able to land a big draft pick form Kentucky or Florida). The SEC is the Securities and Exchange Commission, and they have charged him with insider trading for allegedly using confidential information to avoid more than $750,000 in losses.
To break it down, Cuban owned a bunch of stock in mamma.com, a canadian-held internet search engine company. He found out from confidential sources not made public, that mamma.com was going to have a large stock offering that would be far below current market value. Cuban went ahead and sold his stock when the value was still high (before the large public offereing at a lower price), avoiding losses of nearly $750,000.
From ESPN news services:
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,” Scott W. Friestad, deputy director of the SEC’s Division of Enforcement, said in a statement. “It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market.
Cuban had solidified himself as a sleaze-ball well before this, but now he’s gone from “sort of ha-ha funny” type pranks (grimace while you laugh), to “ha-ha oops now I’m about to go to prison” type actions.
Save me, Mamma. Umm, maybe not this time!
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