Mark Cuban is in Trouble with the Law for Alleged Insider Trading of a Technology Stock
Many of you who are interested in alternative energy follow solar power, wind power, biodiesel and other alternative energy stocks. Many of these stocks are volatile. Changes in oil prices can affect the price of solar power companies and other alternative energy corporations. Also other factors including new technology and mergers can affect the stock price when the news becomes public.
If you work with one of these companies, you may have information that can affect the stock price. You may not buy or sell stock or stock options with this knowledge before the information is available to the public. Mark Cuban is an example of what happens when the Securities and Exhange Commission (SEC) investigates. Mark Cuban allegedly sold 600,000 shares of Mamma.com before more stock was issued which diluted the value of existing shares. The SEC alleges that Mark Cuban had knowledge of the matter. Mark Cuban denies that he did anything wrong and will fight the charges.
Let this be a lesson of what can happen if you trade on insider information. Mark Cuban is a very successful Indiana University graduate who has become a billionaire. He started broadcast.com which he later sold. The company started Internet Radio as a way to listen to Indiana basketball in Texas. For more information on Mark Cuban’s insider trading problem and other information about him, you may visit his blog at http://blogmaverick.com/ .
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Mr. Cuban called the government’s allegations false and indicated a belief that SEC staffers were out to get him. He will will vigorously fight to prove his innocence. IMHO this is just another example of the feds unfairly making an example of a high-profile citizen who has dared to publicly criticize the government. $750,000 is chump change to Mark Cuban and he has never made a secret of his sale of mamma.com stock when the company decided to go “private” and change direction. Mr. Cuban is a long time critic of both the federal government and the SEC.
I hope that this federal targeting will inspire Mr. Cuban to support the Libertarian Party with some of his billions. Government at all levels is too large, too expensive, woefully inefficient, arrogant, intrusive, and downright dangerous. Democratic and Republican politicians have created the status quo and do not intend to change it. http://www.lp.org
That’s one of the first questions coming up in today’s news, reported by the WSJ’s Kara Scannell, that Dallas Mavericks owner Mark Cuban faces insider-trading charges related to the site. Mamma.com is a Canadian search
v. : 1. The Commission charges Defendant Mark Cuban (“Cuban”) with committing securities fraud by engaging in illegal insider trading. Despite agreeing in June 2004 to keep material, non-public information about an
In this Nov. 9, 2008 file photo, Dallas Mavericks owner Mark Cuban yells at referees during the second half of their NBA basketball game against the Los Angeles Clippers, in Los Angeles. Federal regulators have charged Dallas