According to multiple reports on Monday morning, Mark Cuban has been charged with insider trading by the Securities and Exchange Commission. A report in the Wall Street Journal indicated Cuban sold 600,000 shares of Mamma.com “upon learning it was raising money in a private offering.”
The Wall Street Journal reported that the SEC “alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after leaning 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 that 10%.”
The SEC claims that selling his stake, Cuban “avoided more than $750,000 in losses.”
Major League Baseball has not made a statement concerning the charges.