Mark 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."
Cuban's a Trader -- Busted for Pulling a Martha
11/17/2008 2:32 PM PST BY TMZ STAFF
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