Any billionaire that plays the market, can be accused of insider trading, since these folks are real close to the action, it's not out of the question for them to use their influence to get the one on their competitors and everyone else, since that's how most of them became rich, being one step ahead of the game.
Yeah, this is a serious issue. Cuban should quickly admit to any minor wrongdoing or it could get worse. When the SEC sets their sights on a target they want they don't stop and don't back down. As someone that comes from the SEC investigation division, I will tell you those boys and gals take their job very serious.
He traded and protected about 700k by selling on news before it hit the market. He was facing dilution of his shares.
Martha Stewart went to jail because obstruction of justice. If he is guilty, he can pay back the 700k and negotiate a penalty.
If he fights this, he better win. Penalty will be high if he loses. Public image is important here, not the money.
This link and quote are Cuban's response to the SEC's charges, apparently this has been going on for 2 years, according to Cuban.
http://blogmaverick.com/2008/11/17/the-s...This matter, which has been pending before the Commission for nearly two years, has no merit and is a product of gross abuse of prosecutorial discretion. Mr. Cuban intends to contest the allegations and to demonstrate that the Commission’s claims are infected by the misconduct of the staff of its Enforcement Division.
Mr. Cuban stated, “I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”
[Edited by - Hoopsmeister on 11-17-2008 3:04 PM]
"BUSTED"!!! I hope his butt goes to jail, just like they did Martha!
