SEC Charges Mark Cuban With Insider Trading
by Blackout612 on Nov 17, 2008 12:11 PM EST
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Fronted by Luke Thomas.
Mavericks owner and HDNet founder Mark Cuban was charged this morning with insider trading, as filed by the SEC. He is accused of selling his stock in mamma.com when receiving insider information, which reportedly saved him over 750 thousand dollars. This could have major implications on the world of MMA in that Cuban's HDNet could be facing troubling times, with this charge piling on to a shaky economical situation. Cuban may also never be allowed to pursue his own MMA organization, as he likely would not be allowed to be involved in gaming or promoting a sanctioned sporting event after this is all said and done. He is also looking at serious jail time. And even though Dana White seems to spare him while smearing his competitors, this latest development may put a little smirk on his face.
An article about the situation is available at Sportsline.
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I’m not saying this is true, but I’ll post it so someone who knows can answer, but the articles say civil action.
In my mind civil action = fine, not jail, but I really have no idea how the SEC operates.
Martha Stewart was indicted, and this reads like he’s being sued, but I don’t know if that means he isn’t/won’t/can’t be charged with a crime in the future.
As long as it stays a civil charge he will avoid jail time but that doesn’t mean that they won’t charge him with the felony at a later date.
This is what he is currently facing:
The SEC is seeking a court judgment against Cuban finding that he violated the antifraud provisions of the federal securities laws, an injunction against future violations, an unspecified civil penalty and restitution of the losses Cuban allegedly avoided.
http://msn.foxsports.com/nba/story/8808030?MSNHPHMA
And to be fair… I don’t personally know the ramifications of this charge as it concerns his ability to sanction sporting events. It’s possible that the NBA would allow him to continue his ownership, but that a boxing commission would reject his application for an event. State boxing commissions are actually much more strict than profressional sports leagues, as crazy as that is (being that they are actually federally regulated).
I’m just glad that mamma.com is a search engine, and not some mma thing. That was my initial fear when I saw the news story.
I actually didn't make the MMA connection in the name
until the second read through the article. I had more of an image of Cuban in a dolly-hat suckling off some 90 year old’s breast. Dunno why I decided to share that…
There is no such thing as innocence, only degrees of guilt.
by misterjonez on Nov 17, 2008 12:53 PM EST up reply actions
Correct me if I am wrong...
Didn’t Cuban “make” that documentary “The Smartest Guys in the Room” the Enron story?
How does spending a couple of million to produce a documentary that lambastes insider traders; then doing it yourself to the tune of $750,000 make any damn sense?
Being on the internet gives me a right...nay a responsibility to bitch about things
The guys at Enron completely cooked their books, misleading creditors, investors, employees, etc. in the process. They were involved in energy trading which I’m not qualified to explain, but it’s different than trading stocks. The size and scope of Enron is also much greater that an alleged insider trading charge valued at $750,000.
Now, I’m not saying that doing what Cuban allegedly did is okay. They’re just different. I don’t believe the ramifications of this charge are as far reaching as Enron. Of course, it would be hypocritical of Cuban if he is, in fact, guilty. I just don’t see the two acts as being equivalent and wanted to point that out.
by Cannon Jacques on Nov 17, 2008 2:55 PM EST up reply actions
This is like me stealing a nickel.
750k to Cuban is chump change. While these guys don’t get rich by throwing money down the drain, i have a hard time comprehending why he would risk so much for so little.
http://eliotmarshall.com/
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