FOX Business Channel is reporting that the SEC has confirmed they’ve filed insider trading charges against American billionaire entrepreneur Mark Cuban related to the company shares of search engine mamma.com, now known as Copernic, Inc.
The SEC’s charge, a civil complaint rather than a criminal charge, alleges that Cuban traded on Copernic based on information that was not public knowledge.
From WSJ.com:
The Securities and Exchange Commission filed insider trading charges against Mark Cuban, the outspoken owner of the Dallas Mavericks, for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering.
The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.
Cuban is the owner of the NBA’s Dallas Mavericks and chairman of HDNet.
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