Mark Cuban accused of insider trading Options

[WTF Jones]

Mark Cuban charged in insider trading case

Mark Cuban, Internet entrepreneur and owner of the Dallas Mavericks, was charged with insider trading Monday related to the stock of an online search engine, the Securities and Exchange Commission said.

The SEC alleges that in June 2004, Mamma.com Inc. invited Cuban to participate in a stock offering that would be conducted at a discount to the company's prevailing market price.

Within hours of receiving this information, according to the civil complaint, Cuban called his broker and instructed him to sell his entire position in the company. By selling his stock before the public announcement of the offering, Cuban avoided losses of more than $750,000, the SEC said.

Messages for Cuban and his legal representatives were not immediately returned.

It's unclear how the civil charges will affect Cuban's ability to continue to participate in the sale of the Chicago Cubs, owned by Tribune Co.

[mhaverty]

Look for them to crucify him publicly to take some of the heat off all of this bail out bullshit and to protect the old guard.

[AckAckAckAck]

i've never understood why this was illegal.

[Look Sharp!]

i've never understood why this was illegal.

me neither

[DanPM]

i've never understood why this was illegal.

Because you're acting on knowledge that isn't available to the public. Unfair advantage.

[Danny Vermin]

i've never understood why this was illegal.

Me neither.

It makes no sense. It's illegal to make a smart choice about your investments when you hear taht there might be a good reason coming up to get out of them ahead of time?

That's like making preventative doctors visits illegal, or making you sit down and eat your meal at a restaurant before telling you how much it's going to cost or what the ingredients will be.

[Danny Vermin]

Because you're acting on knowledge that isn't available to the public. Unfair advantage.

by this logic, all sports teams must announce their intended upcoming play ahead of time, so that the opposing team can prepare.

that's just fucking stupid.

[Soup]

by this logic, all sports teams must announce their intended upcoming play ahead of time, so that the opposing team can prepare.

that's just fucking stupid.

You can't be serious? So when I receive notification this morning from the EPA that they've discovered my company pumping caner aids into the river and that they'll be holding a press conference tomorrow to announce it, it's ok for me to sell all my stock to you who has no idea that this is coming?

[Danny Vermin]

You can't be serious? So when I receive notification this morning from the EPA that they've discovered my company pumping caner aids into the river and that they'll be holding a press conference tomorrow to announce it, it's ok for me to sell all my stock to you who has no idea that this is coming?

The Stock Market is little more legalized gambling. Most of the time, the House takes you. It's your own risk.

[Headtap]

You can't be serious? So when I receive notification this morning from the EPA that they've discovered my company pumping caner aids into the river and that they'll be holding a press conference tomorrow to announce it, it's ok for me to sell all my stock to you who has no idea that this is coming?

Shit! What company do you work for?

[DanPM]

The Stock Market is little more legalized gambling. Most of the time, the House takes you. It's your own risk.

Except there are rules. Insider trading rules that Cuban knows about.

Whether the rules are "fair" or not doesn't really matter.

[Danny Vermin]

Shit! What company do you work for?

Super Cancer AIDS Fire Protection Devices, Inc.

[DanPM]

Here's all the info

http://www.forbes.com/business/2008/11/17/...7cubantext.html

[Soup]

Shit! What company do you work for?

sorry - we're not hiring.

[Headtap]

The Stock Market is little more legalized gambling. Most of the time, the House takes you. It's your own risk.

Yeah. One time I was at foxwoods playing blackjack. The dealer kept both cards down. They're suppose to show one. He showed it to 2 people at the table but not me and my friend. Prick.

[Danny Vermin]

Except there are rules. Insider trading rules that Cuban knows about.

Whether the rules are "fair" or not doesn't really matter.

Oh, I get it.

and really - watching Mark Cuban go down will be fun. I fucking hate that guy.

But lots of times it seems to me that paying heavy fines/losing your business in insider trading cases would make more sense than incarceration.

[DanPM]

and really - watching Mark Cuban go down will be fun. I fucking hate that guy.

I just want to see him bitching in court like he does on the sidelines.

[Danny Vermin]

Yeah. One time I was at foxwoods playing blackjack. The dealer kept both cards down. They're suppose to show one. He showed it to 2 people at the table but not me and my friend. Prick.

If he mishandled the cards, and you got a peek at them and knew where you stood in that hand, would you bet based on what you saw, or pretend to not see it and bet stupidly?

This post has been edited by Danny Vermin: Nov 17 2008, 01:57 PM

[sixpinelbow]

Maybe he can have a reality show where inmates compete to be his special friend

[DanPM]

Maybe he can have a reality show where inmates compete to be his special friend

[WTF Jones]

I hope he shows up in court wearing a Boston Kunckleheads t-shirt.

[Dave K.]

[Mike C]

Me neither.

It makes no sense. It's illegal to make a smart choice about your investments when you hear taht there might be a good reason coming up to get out of them ahead of time?

That's like making preventative doctors visits illegal, or making you sit down and eat your meal at a restaurant before telling you how much it's going to cost or what the ingredients will be.

Yes and no. Sometimes it's silly. I thought the Martha Stewart thing was. But the rules are intended to stop say a big wig at a company from selling or buying his shares with inside info before the public knows the same info. Makes sense. If not, you have more organized white collar crime than that already exists. From the initial story it seems Cuban could be getting a bad rap but then that other link makes it appear that he was told and did not comply. Should have waited for the second the announcement hit and then sold. Kind of stupid for a guy who seems to get it. He was savy on not wanting to buy more of a company that was screwing their shareholders (Cuban) but didn't know he could get screwed even more for insider trading? Doesn't make any sense.

This post has been edited by Mike C: Nov 17 2008, 02:02 PM

[sixpinelbow]

he gave a million bucks to this chick so she would be his friend

[Mike C]

he gave a million bucks to this chick so she would be his friend

I blame it on white man's guilt.