Monday, November 17, 2008
Mark Cuban's Trading Draws Wrath of SEC, not NBA
Entrepreneur Mark Cuban faces serious scrutiny for his latest trade, and this time it has nothing to do with Jason Kidd or Jerry Stackhouse. Cuban has been charged with insider trading. The Security Exchange Commission claims Cuban avoided $750,000 in losses through non-public information and selling shares of Mamma.com, which is now copernic.com (NASDAQ: CNIC).
I wish I could say more, but I will have to leave it to this, and let the judicial process do its job.I am disappointed that the Commission 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
To put the SEC's charge in perspective, Martha Stewart spent five months in prison after she was indicted for nine-counts,including charges of securities fraud and obstruction of justice.
Stewart avoided $45,673 in losses when she sold all of her 3,928 shares of her ImClone stock in late 2001.
As owner of the Dallas Mavericks, Cuban developed a reputation as one of the most outspoken and innovative owners in the National Basketball League.
To say that 2008 hasn't been a PR-friendly year for Cuban would be a vast understatement. During the offseason, Cuban defended Josh Howard, who publicly admitted to using marijuana and refused to salute the American flag. Howard's reasoning : "I don’t even celebrate that sh!$. I’m black."
Cuban's effort to revive the Mavericks and his enthusiasm are remarkable, but this story, combined with the Howard incident, force me to question his judgment.
By Matt O'Hern at 02:13 PM | Comments (0)