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Cuban's a Trader -- Busted for Pulling a Martha

11/17/2008 2:32 PM PST BY TMZ STAFF

Mark CubanMark Cuban might be knitting a poncho in the near future -- because the Dallas Mavericks owner was just charged with insider trading.

The SEC claims Cuban dumped 100% of the stock he owned in a company called Mamma.com, after he learned the company was going to execute a financial transaction that usually reduces the company's stock value.

According to the complaint, the CEO of Mamma.com gave Cuban a heads up, and Cuban allegedly responded, "Well, now I'm screwed. I can't sell."

The SEC also claims Cuban called his broker shortly after and said, "Sell what you can tonight and just get me out the next day." Cuban avoided a loss of $750,000 by selling his 600,000 shares.

On his website, Cuban said, "I am disappointed that the Commission chose to bring this case based upon its Enforcement staff's win-at-any-cost ambitions. The staff's process was result-oriented, facts be damned. The government's claims are false and they will be proven to be so."

29 COMMENTS

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1.

Just my opinion    

I don't believe a word of this, I read it on CNN and I believe Cuban is innocent!

2079 days ago
2.

Switch    

he's a billioinare and now in trouble for dumping 700K. like he's never taken a hit before. 700k is a drop in the bucket.
not smart

i like him tho. hope he buys the cubs

2079 days ago
3.

Tangie    

There is a special place in hell for these greedy, gluttonous people. No amount of money is ever enough, pure evil drives these subhumans.

2079 days ago
4.

Al    

What an arrogant prick Cuban is.

2079 days ago
5.

Liz    

He detest losing! That being said, I doubt that Cuban will be prosecuted. He will merely have to pay the monies that he would have lost, had he not sold!

2079 days ago
6.

mack    

this is a civil complaint, not a criminal complaint
he will be prosecuted , and he will cut a deal , pay a huge fine and walk............................why is he not being charged criminally if Martha Stewart was charged criminally?

i guess she was chsrged with lying to a grand jury, investigation basically, when they asked her about it she denied, it,
guess he should admit it, and not piss them off

2079 days ago
7.

Amy    

I'm from Dallas and this guy is a prick!!! I'm not surprised in the least.

2079 days ago
8.

True grit    

where was the SEC when the banks and insurance companies were going down the tubes, don't they have to file if stock warrants are or not being exercised. If they weren't exercised why, and why isn't that insider trading you have information that the general public doesn't have? what a joke the organization is biggest scammer of all was Joe kennedy, head of the SEC!!

2079 days ago
9.

Lola    

This past spring I saw him one day prior to losing the finals at the Target near by house, he was pushing the cart with kid in tow while the blonde wife was going aisle to aisle getting what they needed, he was also on the cell phone conducting "personal business" am sure it was more inside trading, He looked to me as a person who is full of himself, btw he didn't look like the friendly type.

2079 days ago
10.

TMZ hits a new low    

Believe me, if it's remotely true the charges will stick and he'll be made an example of by the prosecutors. There is an insatiable need to punish the famous when possible.

2079 days ago
11.

Al Jazeera    

He's a joke. Pure luck his Internet dot bomb got scooped up by Yahoo -- ask them what they think of the acquisition now. He is a great example of the old addage: "sometimes it's better to be lucky than good."

2079 days ago
12.

"K"    

Did anyone see him recently on Don't Forget The Lyrics???

2079 days ago
13.

Brenda Armstrong    

GREAT! I hope he goes to jail! Nobdy tells me when to dump my stock and I have lost 100k in the last month...he is pathetic...make him and everyone else like him pay their price in JAIL! Deal with it like every other American has to deal with it! JAIL!!!!

2079 days ago
14.

Yawn    

Oh BOO HOO. These ultrarich guys have the inside track all the time.
They should all be nailed by the Feds.
It's always the little guy who suffers when his little investments are screwed.
Mr. Big gets a heads up just in time.
They should all be sitting in jail together
I have no sympathy.

2079 days ago
15.

Disgusting    

Ha! It must have been a slam dunk case if the SEC is doing anything about it. Unfortunately, the SEC and FINRA don't do anything except for the high profile sexy cases.

2079 days ago
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