SEC Pushes Insider Trading Claim Against Mark Cuban

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Oct. 2 (Bloomberg) -- Fred Tecce, partner at Panitch Schwarze Belisario & Nadel examines the SEC’s insider trading case against billionaire Dallas Mavericks owner Mark Cuban over his selling of shares of a Canadian internet search company. He speaks on Bloomberg Television’s “Market Makers.”

Game it?

Mark cuban, maybe dirty business, but is it illegal?

It does not past the smell test.

Probably slicing the baloney a little too thin.

Here is the problem they face in the case.

Mark cuban is not an officer, director.

At the time did not own more than 10% of the company.

The government has to show he was someone who had information not available to the general public that it was material and used it to trade.

Usually what they do they show a tippie.

Breached a fiduciary duty and told them something they should not have and he acted upon it.

Even then, in this case the company was arguably as i understand it he understood he was going to take a private placement that would dilute his big.

That's sounds as if he was in possession of privileged information.

The argument the sec is making is he made a lot of money, $750,000 i selling before the private placement took lace.

Excellent job.

That is the case right there.

They argue he had inside information and used it to his advantage.

The question is, how does he get the information you down generally when you get the information, you have to show he is a tippie.

The example i gave my students is you are hanging around at a barbecue with your next door neighbor and works of the big pharma company and says i have to tell you, the fda is coming out later against us in the week, if you have stock on the you need to get rid of it.

You know he is not supposed to be totally do that and you buy and sell based upon that.

Unfortunately, because you were going after mark cuban, when you shoot at the king, you better kill him.

The government case does not fit into the square holes they have to to convict the guy.


What is so special about the fact that he is powerful and rich and famous it?

If someone gave him information he should not have had and acted upon it, how is that different?

Because he has to be someone who cannot act upon it under the law.

I always told people this, justice is blindfolded.

I do not care how much money the guy has.

If you broke the law, he broke the law and should be prosecuted to the full extent of the law.

The problem is the guy has a tremendous personality.

You cannot put around pagan the square hole, particularly with a guy like mark cuban.

Do i like what he did?

Not even a little bit.

I think you better be ready for it.

What i am still having trouble understanding, and not for lack of the effort, but how this differs from the backyard or but here you just described or raj rajaratnam.

He did not own 10% of the stocks he was trading either.

Here is why.

When someone tells you that, you have to know they were not supposed to tell you that in the first place.

That they did what the law calls briefs fiduciary duty.

This comes down to mark cuban playing -- it sounds to me as if it sounds like mark cuban is playing dumb.

That a guy as smart as mark cuban would not understand the implications of the ceo of one of its investments telling him that private placement that it was going to dilute him by 8.5% was coming?

He is either too dumb or too stupid.

One or the other.

Too dumb or too stupid?

Likes it is either or.

Good points.

Perfect example of goods -- too stupid.

Smart enough to know he got the information not from someone preaching fiduciary duty and therefore the government would not be able to meet one of its elements.

Unfortunately illegal tech lethality.

-- illegal technicality that i find repugnant.

Thank you so much for joining

This text has been automatically generated. It may not be 100% accurate.


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