Dallas Mavericks owner Mark Cuban has some explaining to do with the Feds. Federal regulators have charged Cuban with insider trading for allegedly using confidential information on a stock sale to avoid substandial financial losses.The Security and Exchange Commission filed a civil lawsuit against Cuban on Monday in a federal court in Dallas. The SEC (no not that one) says Cuban had the opportunity to get in on the common stock offering of Mamma.com, Inc. after he agreed to keep the information private back in June 2004.
The SEC contends that Cuban knew shares were to be sold below market value and after a few hours of getting that information, Cuban told his broker to sell them avioding $175,000 in losses. The SEC tends to frown upon that.
No comment from Cuban or his attorneys.
Cuban's net worth is $2.3 billion according to Forbes magazine as of March 2007. That's filthy rich.
Photo Courtesy: Tim Heitman/NBA/Getty Images
No comments:
Post a Comment