Mark Cuban Responds to the SEC Charge

November 17th, 2008 at 12:00 am
 


mark cuban 

Well, there’s not much drama here.  Mark Cuban will be letting the justice system take its own course.  The recent filing of the Securities and Exchange Commission against the dot com billionaire and entrepreneur on the charge of Insider Trading has made headlines today and Cuban simply writes his statement in his blog.

I wish I could say more, but I will have to leave it to this, and let the judicial process do its job.
November 17, 2008
RE: SEC Civil Action in the United States District

for the Northern District of Texas, Dallas Division

Mark Cuban today responded to a civil complaint filed by the United States Securities and Exchange Commission in the United States District for the Northern District of Texas, Dallas Division. In its complaint, the Commission charges that Mr. Cuban engaged in violations of the federal securities laws in connection with transactions in the securities of Mamma.com Inc.

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."

According to the SEC complaint, Mark Cuban used confidential information he learned form a meeting with Mamma.com Inc. to avoid financial losses in the stock market.  Cuban had a 6.3% stake in search engine Mamma.com which he all sold based on information he learned at a secret meeting.  Consequently he saved about $750,000 from the move.