CUBAN CHARGED WITH INSIDER TRADING
Former DANCING WITH THE STARS contestant MARK CUBAN has been charged with insider trading; accused of avoiding over $750,000 (GBP502,513) in stock losses.
Securities and Exchange Commission officials in America allege Cuban sold his entire six per cent ownership of website Mamma.com on 28 June 2004 - one day before shares of the company dropped by more than 10 per cent.
The American Internet billionaire, who also runs basketball team the Dallas Mavericks, allegedly avoided the losses after learning the site was raising money through a private investment in a public entity - a transaction often followed by a drop in the stock price as shareholders anticipate their stake will be diluted.
According to website TMZ.com, the CEO of Mamma.com gave Cuban the tip.
In a new report, Scott W. Friestad, Deputy Director of the SEC’s Division of Enforcement, states, "As we allege in the complaint, Mamma.com entrusted Mr.
Cuban with non-public information after he promised to keep the information confidential".
Cuban’s attorney’s and spokesperson have yet to issue comments on the case.
Movie & Entertainment News provided by World Entertainment News Network (www.wenn.com)
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