Looks like Mark Cuban pulled a Martha Stewart. The co-founder of HDNet and owner of the Dallas Mavericks is accused of selling 600,000 shares of Internet search company Mamma.com using non-public information in 2004.
As CNNMoney.com reports, Cuban allegedly called his broker and instructed him to sell the shares after he learned the company would raise money through a public offering and its stock price was about to drop. Mamma.com's stock did fall (9.3 percent) and Cuban dodged losses of more than $750,000 by selling early.
"As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential," Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement said in the report. "Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares."
Cuban's HDNet is broadcasts numerous mixed martial events, as well as the show "Inside MMA." The co-founder could not be reached for comment in relation to the accusation.
- Mark Cuban charged with insider trading (CNNMoney.com)