Cuban Accused of Insider Trading; SEC Claims NBA Team Owner Avoided Losing $750,000 in Stocks
Byline: Ben Conery, THE WASHINGTON TIMES
Federal regulators Monday accused Mark Cuban, the flamboyant owner of the Dallas Mavericks professional basketball team, of insider trading, saying the billionaire media mogul used confidential information to avoid losing $750,000 worth of stock in an Internet company.
The Securities and Exchange Commission (SEC) filed a lawsuit against Mr. Cuban, 50, seeking unspecified civil penalties and restitution.
No criminal charges were filed against Mr. Cuban, who also owns HDNet, a national high-definition television network, and the national Landmark Theaters chain.
The Justice Department declined to comment on the case.
I am disappointed that the commission chose to bring this case based upon its enforcement staff's win-at-any-cost ambitions, Mr. Cuban wrote in a posting on his blog, Blogmaverick.com. The staff's process was result-oriented, facts be damned. The government's claims are false, and they will be proven to be so.
The lawsuit arises from a 2004 conversation between Mr. Cuban and the chief executive officer of Mamma.com Inc., an Internet-search engine of which Mr. Cuban was the largest known shareholder, according to the SEC.
During the conversation, the CEO confidentially invited Mr. …