Mark Cuban Charged With Insider Trading
By Mack Rawden 2008-11-17 12:07:33
Precocious and excitable Dallas Mavericks owner and visionary behind Broadcast.com Mark Cuban has been hit with federal charges. The possible future owner of my beloved Chicago Cubs was charged this morning with insider trading, the same offense for which Martha Stewart served hard-ish time. The Wall Street snafu happened back in 2004 when Cuban learned Mamma.com, a company which he held a six percent stake in, was trying to raise money through selling off new shares at a lower price, thus deteriorating the value of previously held shares. Cuban sold just one day before the announcement was made public. That doesnít look good.
According to The Wall Street Journal, the preemptive share selling saved Cuban approximately seven hundred and fifty thousand dollars in loses. Honestly, I can see how this sort of thing happens. If I owned part of Enron and knew it was plummeting toward Hell, Iíd probably have considered bailing.
Editorís Note: Cinema Blend in no way encourages or tolerates insider trading. The Security And Exchanges Commission is a viable and important arm of the United States Government, and their authority should be respected and orders followed at all times. The fact that Joseph P. Kennedy, maybe the most nefarious and prolific inside trader of all time, was the first chairman of the S.E.C. in not something to be laughed at or referenced in articles either in print or on the internet.