The SEC today charged controversial entrepreneur and Dallas Mavericks’ owner Mark Cuban with insider trading.
The complaint alleges that in June 2004, Cuban sold 600,000 shares in Mamma.com after being invited to participate in a stock offering of the company; knowing that the offering would be conducted at a discount, Cuban allegedly sold his shares within four hours of the invitation.
“Insider trading cases are a high priority for the Commission. This case demonstrates yet again that the Commission will aggressively pursue illegal insider trading whenever it occurs,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement.
The Commission’s complaint seeks to permanently enjoin Cuban from future violations of the federal securities laws, disgorgement (with prejudgment interest), and a financial penalty.
Cuban released a statement early this afternoon: “I am disappointed that the (SEC) chose to bring this case based upon its enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”