November 17, 2008 12:47PM
Cuban’s 750-Grand Screwing
By Ray Hennessey
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Who 'screwed' Mark Cuban?
Picture this: Cuban owns roughly 6 percent of internet stock mamma.com, which he had only recently purchased, and he gets a call from the CEO telling him the company is about to do a PIPE, essentially a private sale of stock at a price well off where the shares are trading. That would have meant big losses for Cuban, who, in the words of Mamma execs, "flew off the handle" and, according to the SEC complaint, told the CEO: "Well, now I'm screwed. I can't sell."
But he did sell -- even though he knew about the dilutive offering and even though he was bound to at least hold on until after the PIPE was done. Hence the SEC lawsuit, which says he saved $750,000 by selling.
Cuban may be cleared. But if he's not, it seems like a perfect example of why you shouldn't let emotion get in the way of investing. A billionaire is accused of violating securities law to save $750,000 for a poor investment.
Yes, Mamma.com screwed Cuban. But he also screwed himself.
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Cuban screams at the refs, insults people and is generally obnoxious. . . . isn’t Karma a woulderful thing!!
oh…!!!!!!!!!……….ok…!!!!!!!Mark Cuban…….just don’t lie…..it’s ok……remember, martha went to jail for LYING…..
ok….for all you insiders…..it’s………OK………to give your tips out to “FRIENDS”…….because martha went to jail for LYING…………
Interesting that Martha Stewart and Mark didn’t “fear” higher taxes due to Barack Obama’s election yet both took extraordinary steps to salvage a few bucks (to them). Same old story….greed! Willing to raise the next guy’s taxes but a different story for themselves.
Stewart went to jail for lying to the government, not inside trading….
im right there with ya mike stohlgren, already preparing the dump before january. i cant wait to take short and ultra short ETF’s. CHANGE, thats all we’re gonna have left once Obama is done in office. This is gonna be a financial disaster. As for Cuban, who cares…it’s like telling a drug dealer the cops are gonna come, he’s gonna get the hell out of Dodge…you all would have done it too.
Do not confuse Cuban’s problem with Martha’s. She went to jail for Lying about the trades not for making them. They never proved that part.
The CEO is part of the NO-NO…..He GAVE out insider information…..Is this not correct…….???? I would be willing to bet that Cubun and Stewart are just pimples on an elephants ass…as to what is really going on out there with insider tips etc…..
Want an insider tip……Obama will be president….dump your stocks…..all of them……oooops….dont tell anyone where you got this info……LOL
LOL. Put that dirtball away for a few years. Send Martha Stewart to his jail cell to counsel him.
Martha was convicted of lying to the FBI, not insider trading.
I volunteer to run the Mavericks while he’s away.
I sure agree with “JOE”. While you are at it, add Barney Frank to the list and do not forget Franklin Raines who put Fannie Mae into the tank while he got $90,000,000 in salary and bonuses.
Waldo,
Martha went to jail for lying to the FBI.
Hmmm.. seems like some here don’t remeber Ms. Stewart didn’t spend time for insder trading, she was convicted of obstruction of justice and making false statements.
As for Mark Cuban, he is agressive, perhaps he should just come forward with the true facts and let pay what will be a financial fine.
I agree with Scott the timing could be non-coincidental.
See the following web-site,
http://dealflow.typepad.com/my_weblog/2008/10/billionaire-mar.html
if this is true and proven I sincerely wish and hope for serious jail time with no probation for this jerk.
They should also investigate Dodd and give him serious jail time also.
We’ll see how all the details of this shake out. Mark Cuban has always seemed like a straight shooter, but openly willing to break rules that he doesn’t agree with -not that this SEC rule is a disagreeable one. Funny though how the SEC gets used as a political tool to go after individuals with positions contrary to those in charge. Whereas Warren Buffet seems to have free reign to buy & sell stock with insider government knowledge and actively works to manipulate lawmakers to benefit his trades. We used to call that Bribery. And worse, Bribery of a Public Official -and then they both did jail time. Using laws selectively for political gain in this way is an undermining of government. Send Buffet to jail. Send Paulson to jail. Send Cheney to jail. Send Pelosi to jail. And, dammit, if you can’t send Chris “Countrywide” Dodd to jail, then there is something fishy going on at the SEC and related agencies.
Claude, highly unintelligent comment.
The CEO called him to sell him stock in the offering. A little arrogance by Cuban? Do ya think?
Interesting that this happens to come out more than four years later, just at the time Cuban is one of the final bidders for the Chicago Cubs…must be a complete coincidence, right? Hmm…let’s see who those other three bidders are, might someone have a connection with a lame duck president, or some other friend at the SEC? Just idle curiousity…