celticgrafix
11-23-2008, 06:08 AM
Billionaire Mark Cuban, who owns the Dallas Mavericks and more importantly for fight fans, HDNet Fights, was charged Monday with insider trading by the Securities and Exchange Commission.
The SEC is accusing Cuban of selling 600,000 shares of internet seach engine company Mamma.com based on knowledge of non-public information.
Cuban sold the 6% of his stake in Mamma.com after learning of a planned stock offering, where companies sell a stock lower than its market value in order to raise money.
By selling the stocks, Cuban avoided losses of around $750,000.
"As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential," said Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement. " Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares. It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market."
Cuban intends to contest the SEC's claims.
"I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions," Cuban said in a statement. "The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so."
In 2007, Cuban, owner and founder of HDNet, threw his hat inside the cage by launching HDNet Fights, which started as an MMA promotion but eventually became a series of MMA programming for the high-definition channel. HDNet Fights has televised such promotions as DREAM, IFL, Strikeforce, Sportfight, Ring of Combat, MFC and more.
The SEC is accusing Cuban of selling 600,000 shares of internet seach engine company Mamma.com based on knowledge of non-public information.
Cuban sold the 6% of his stake in Mamma.com after learning of a planned stock offering, where companies sell a stock lower than its market value in order to raise money.
By selling the stocks, Cuban avoided losses of around $750,000.
"As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential," said Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement. " Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares. It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market."
Cuban intends to contest the SEC's claims.
"I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions," Cuban said in a statement. "The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so."
In 2007, Cuban, owner and founder of HDNet, threw his hat inside the cage by launching HDNet Fights, which started as an MMA promotion but eventually became a series of MMA programming for the high-definition channel. HDNet Fights has televised such promotions as DREAM, IFL, Strikeforce, Sportfight, Ring of Combat, MFC and more.