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

Posted Nov 17th 2008 12:32PM 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."

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16. The stock market is a disaster because investors have no real protection, and stock brokers are accountable to no one. The SEC and FINRA are a joke. Once in a while, they'll pursue an easy media case to justify their existence and make it appear like they're doing their job. Someone needs to investigate the SEC/FINRA to see if they help corporate mergers by not pursuing complaints that would affect the corporations stock.

This country is in a mess because everyone breaks the law and harms others without consequence. Regulators just protect the people they are regulating. State Bars exist to protect lawyers, Medical Boards protect doctors.

It's vicious for people to know who to trust with their money, their lives, etc. because these days pretty much no one can be trusted. Everyone's a crook because they can get away with it, and most wrongdoing is kept secret.

Posted at 7:29PM on Nov 18th 2008 by Scary

17. Could not of happened to a nicer guy! You know the saying: you can take the boy out of the trailer but you can't take the trailer out of the boy!
Go get FEDs!

Posted at 4:38PM on Nov 17th 2008 by mickey lou

18. Did anyone read the annual report of the Mamma.com? What a joke of a company for him to be mixed up in.

Posted at 4:42PM on Nov 17th 2008 by Dan

19. Martha Stewart's case was different. She went to jail for obstructiing justice after she lied to investigators. She would have avoided jail by copping to it.

Posted at 5:01PM on Nov 17th 2008 by Stereo Steve

20. I like this guy and hope it all gets straightened out , and btw it didn't just happen its from 2004 and if the case was so strong it would have come to light 4 yrs ago and he would already be done with it..some of you people seriously need medication . every time the mavs take the floor its because of him they do. Martha Stewart went to jail for lying, she denied everything and felt she was above the law, he hasn't had a chance to admit or deny anything its being released out for people to condemn and judge on their own. if he is guilty the most that will happen is repayment and a fine..if he is innocent he will have to live with judgmental people calling him a crook that walked so either way he loses something from this. How about being upset with the real criminals in this country.. our Elected do nothing officials

Posted at 6:29PM on Nov 17th 2008 by lovmesomecuban

21. He is just billionaire trailer trash!

Posted at 6:33PM on Nov 17th 2008 by mickey lou

22. Yes He has made a ton of money. Why dont you idiots look at what he is doing for our Veterans with hisFallen Veterans Foundation. If you can match that have at it. If not shut the F+++ up

Posted at 7:53PM on Nov 17th 2008 by takea 2nd look

23. Now we know how he lasted so long on Dancing With The Stars.

Posted at 8:41PM on Nov 17th 2008 by Petey Gee

24. Hope he gets his due, like jail time. He is a worthless, arrogant and egotistic slug. $700K is a drop in the bucket to him. His stupid move will put him in jail where he should be.

Posted at 9:48PM on Nov 17th 2008 by maggie mae

25. Reply to post #21. If he is doing so much good for the veterans, why did he make that terrible movie which most theatres banned.

Posted at 9:50PM on Nov 17th 2008 by maggie mae

26. This guy is a pompous, egotistical a-hole. I used to live in the DFW area and he is an embarassment to Dallas. When asked why he bought the Dallas Mavericks, he smirked and said "Because I could". He thinks he's better than everybody else just because he has money.

Posted at 6:52PM on Nov 18th 2008 by Kitty

27. Mark Cuban is a punk. He thinks he is untouchable. Hope he gets treated like any other criminal.

Posted at 10:30PM on Nov 17th 2008 by proud american

28. "21. Yes He has made a ton of money. Why dont you idiots look at what he is doing for our Veterans with hisFallen Veterans Foundation"

So........he can ANYTHING HE WANTS because of THAT?
I'll bet you're a single issue voter too.

Posted at 10:35PM on Nov 17th 2008 by CA

29. Attention all Geniuses spouting off about evil rich peeps getting some karma: don't be too trusting of the SEC's version of events. These Spitzer wannabes took down a firm I was at with a damning indictment. The eventual result after the business was crushed? Charges dropped.

These little gov't freaks will say and do anything to get notoriety, even if it means crucifying innocent people. Not saying that El Cubano is innocent, but don't fool yourself into believing that the SEC is always truthful, or always right.

Another nugget for your little heads - he could have also "sold" shares short on the other side to protect his long. Possibly an inside trade, but more complicated than the dumbed-down news reports.

Posted at 11:46AM on Dec 22nd 2008 by JR Cash

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