SEC Hits Mark Cuban With Insider Trading Charges

Washington, DC (AHN) - The Securities and Exchange Commission on Monday filed charges against Mark Cuban for insider trading in Mamma.com stock back in June 2004.

The complaint was filed in the Northern District Court in Texas and claims Mamma.com asked Cuban if he would like to participate in a second stock offering after he agreed to keep the information confidential.

The information let Cuban know that the stock offering would be done at a price below the prevailing market price. The claim states that several hours later Cuban sold his entire stake in Mamma.com.

Cuban, the Dallas Mavericks owner, held 6.3 percent of Mamma.com shares or roughly 600,000. The sale helped Cuban avoid a potential loss of $750,000.

"Insider trading cases are a high priority for the Commission. This case demonstrates yet again that the Commission will aggressively pursue illegal insider trading whenever it occurs," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement.

Cuban has already disputed the charges and said he plans to contest them.

Along with the Dallas Mavericks, Cuban, 50, owns Landmark Theaters and HDNet cable television.