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mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 11:13 am
by radbag
owner of the dallas mav's
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 11:36 am
by radbag
http://online.wsj.com/article/SB122693827604333637.html
The Securities and Exchange Commission filed insider trading charges against Mark Cuban, the outspoken owner of the Dallas Mavericks, for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering.
The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.
In a PIPE transaction new shares are issued at a discount to the current trading price. An announcement of a PIPE transaction is often followed by a drop in the stock price as shareholders anticipate their stake will be diluted.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 11:49 am
by a1bion
I wanna know how he learned of the private equity deal.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 11:52 am
by radbag
some ambitious, up and coming analyst probably filled him in for courtsides.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 12:02 pm
by DocZaius
I guess Cuban needs to lay off the PIPE.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 12:21 pm
by a1bion
Cases like this one and Martha Stewart always kill me. These are people who have fuck you money coming out their wazoos and they just can't resist making the inside trade to avoid losing a little bit of money or making themselves feel important because they knew what the rest of the peons didn't.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 12:24 pm
by TTBHG
The SEC found another posterboy to prop up the facade that they are doing something. Martha Stewart and Mark Cuban, the SEC is doing its part to keep the criminals off the street.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 12:29 pm
by radbag
to be clear, cuban is named in a civil complaint...the difference between this and martha stewarts is that a fine is being sought after...no jail time for cuban.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 12:47 pm
by TTBHG
Stewart went to jail for lying and not for insider trading. Just making a point.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 2:05 pm
by DocZaius
to be clear, cuban is named in a civil complaint...the difference between this and martha stewarts is that a fine is being sought after...no jail time for cuban.
Not only that, but he can settle it by throwing money at it and never admit that he did anything wrong.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 2:45 pm
by TTBHG
^Isn't being rich great?
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 3:25 pm
by a1bion
I looked around for a few other articles on this story, just to get some more detail for it. Cuban's net worth is $1.8 billion. He pulled this stunt to avoid a potential loss of $750,000, which is crap to him.
Now MLB might reconsider his bid to buy the Chicago Cubs, due to character issues, stemming from this investigation. Boggles the mind.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 4:44 pm
by TTBHG
MLB said there was 0% chance of buying the Cubs well before this. They wanted nothing to do with Cuban.
mark cuban being charged for insider trading
Posted: Mon Nov 17, 2008 5:23 pm
by MinGator
mlb is short sighted imo.