Mark Cuban, Internet entrepreneur and owner of the Dallas Mavericks, has been accused of using private information to get an edge on stock trading and ultimately prevent the loss of $750,000.
The SEC claimed that Cuban agreed to receive 600,000 shares of Mamma.com, a search engine, and agreed to keep the shares secret from the public. After this accusation was released, Cuban suspiciously, and subsequently, sold all of his shares from Mamma.com.
Cuban denies these allegations. Late on Monday, one of Cuban’s lawyers said, ”We’re shocked. We find it incredible that given all the important issues that the SEC has to address with regard to today’s economy they’ve sought to bring a $750,000 case relating to a he-said she-said about one trade against a person whose integrity has never been questioned before with regard to the securities markets."
Cuban did use a lot of this money toward the Dallas Mavericks and the NBA. For this reason, apparently, the NBA refused to comment on the story.
I will have more on this investigation as the information becomes available.