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View Full Version : MARK CUBAN: Insider trading charges



NJZag
11-17-2008, 08:39 AM
http://money.cnn.com/2008/11/17/news/newsmakers/cuban_insider_trading/

Dumped stock too fast, avoided losses.

LongIslandZagFan
11-17-2008, 09:07 AM
http://money.cnn.com/2008/11/17/news/newsmakers/cuban_insider_trading/

Dumped stock too fast, avoided losses.

I like the guy. But he'll get the Martha Stewart treatment.

What gets my goat is that they are going after the "small fries" instead of nailing the guys on Wall Street who seem to hide it better.

Zag 77
11-18-2008, 10:10 AM
Most 10-b-5 cases, as this one, are filed by the feds as civil cases. That means only fines and some form of damages, maybe some restrictions on stock transactions if Mr. Cuban found liable.

That does not mean the feds could not change their minds at some point and decide to play hardball and decide to add criminal charges, but that is not the way it was filed at this point, unlike Martha Stewart, where they filed criminal charges right off the bat. Martha's case involved more than the chump change that Mr. Cuban saved here.


According to Phillip Stern, a former SEC attorney and current lawyer at Neal, Gerber & Eisenberg, Cuban will likely face a fine of twice the losses he would have incurred, or about $1.5 million. The SEC's lawsuit is a civil case, and Cuban does not face any criminal charges.

from cited cnn article