Maverick Charged With Insider Trading
November 17, 2008 by Tisa Silver
Filed under Finance
One Maverick may be in some serious trouble!
The SEC has charged Dallas Mavericks owner, Mark Cuban, with insider trading. The charges stem from Mr. Cuban’s involvement in the initial public offering of a Montreal based firm, Mamma.com.
IPOs are typically marketed to individuals with access to large amounts of wealth. The SEC alleges that the Mamma.com IPO made its way to Mark Cuban in 2004 and he was offered the opportunity to buy the stock after he agreed to keep the information to himself.
According to AP reports, the Mavericks owner found out that his shares would be sold below the market price. He then instructed his broker to liquidate his shares prior to the IPO in order to avoid approximately $750,000 in losses.
Details are sure to emerge, but what’s $750k to guy worth over $2 billion?
Mr. Cuban was once quoted as saying, ”If you don’t follow the stock market, you are missing some amazing drama.”
Truer words have never been spoken.
NOTE: This story has been updated, click here for additional details.
