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SEC charges Mark Cuban with insider trading

By Ameet Sachdev|November 18, 2008

Reporting from Chicago — Mark Cuban, Internet entrepreneur and owner of the Dallas Mavericks, was charged with insider trading today related to the stock of an online search engine, the Securities and Exchange Commission said.

The SEC alleges that in June 2004, Mamma.com Inc. invited Cuban to participate in a stock offering that would be conducted at a discount to the company's prevailing market price. Within hours of receiving this information, according to the civil complaint, Cuban called his broker and instructed him to sell his entire position in the company.


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By selling his stock before the public announcement of the offering, Cuban avoided losses of more than $750,000, the SEC said.

Messages for Cuban and his legal representatives were not immediately returned.

Sachdev is a reporter for the Chicago Tribune.

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