Today the Dallas Maverick owner, Mark Cuban, was handed a complaint by the commission for insider trading. It alleges that Mark Cuban was informed of an impending stock offering at Mamma.com (a search engine company now know as Copernic.), and that within hours of learning of it, he dumped his stocks. According to the complaint, Cuban called his broker and instructed him to sell his entire position in the company. When the offering was publicly announced, Mamms.com’s stock price opened at $11.89, down $1.215 or 9.3 percent from the prior day’s closing price of $13.105. According to the complaint, Cuban avoided losses in excess of $750,000 by selling his stock prior to the public announcement of the offering.
The SEC complaint notes that it’s seeking a penalty and disgorgement of gains, but doesn’t say anything about jail time.
I guess the Dallas Maverick wasn’t all that Mavericky with this one.
