That’s Bad, Right? Mark Cuban Charged With Insider Trading

By Eamonn Brennan

I don’t know anything about finance or trading, but I do know this: You’re supposed to say “fuh-nance” and not “fye-nance.” Also, insider trading is naughty. So I know Mark Cuban is in a bit of trouble, according to this still-developing story from the Wall Street Journal:

The Securities and Exchange Commission filed insider trading charges against Mark Cuban, the outspoken owner of the Dallas Mavericks, for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering.

The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.

PIPE. Ah yes. Private investment in a public entity. That’s like VORP, I think, except you can go to white collar resort prison if you abuse your knowledge of it. But I’m sure that whole “stock dropping a day after Mark Cuban sold his stake” thing was totally, completely coincidental.

Anyway, none of this makes much sense to me. If I had to guess, though, I’d say Cuban should start selling his front-row seat to Mavs games. He might not be needing it for a while.

(Good look, Brandon.)

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